MicroStrategy, one of the largest corporate holders of Bitcoin in the US, is witnessing a significant uptick in interest with the upcoming listings on top stock indices.
MicroStrategy currently holds around 214,000 BTC on its balance sheet. Its executive chairman, Michael Saylor, has remained one of the leading advocates of the king of cryptos. If the company’s shares are listed on the S&P 500, it will mark the entry of yet another Bitcoin player on Wall Street.
MSTR is up 35% over the past month, with its market capitalization surpassing $29 billion. The gains coincide with the recent bullish sentiment on Bitcoin, which rallied past $70,000 before retracing.
MicroStrategy to Debut On MSCI Index
After a quarterly review, MicroStrategy will be among the stocks included in the MSCI Index provider according to Reuters.
MSCI is one of the most tracked indices in the world, and the addition of MSTR will be a game-changer for the company. Billions of dollars have been invested in exchange-traded funds (ETFs) that track the MSCI indices. Fund managers also use the index as a performance indicator.
Following the recent review, MSTR will be one of the 42 stocks that will be added to the index. 121 stocks will also be removed from the index.
Besides MicroStrategy, the other stocks that will be added to the index include data storage firm Pure Storage and mechanical and electrical construction company, Emcor. The stock will be added to this index on May 31. Such an addition triggers gains for the stock, which is bound to affect the price significantly.
MSTR on Russel 1000
The MSCI index is not the only one seeking exposure to Bitcoin through MicroStrategy. The Russell 1000 Index, which tracks the highest-ranking 1000 stocks on the Russell 3000 index, will also add 38 new stocks, and MicroStrategy is among the latest additions.
The addition is iconic as the Russell 1000 index will also feature three of the recent initial public offerings (IPOs). The IPOs debuting on the platform include companies operating in the Technology, Consumer Discretionary, and Industrial sectors.
Adding MicroStrategy to these two indices also comes as Wall Street seeks to seek exposure to Bitcoin. The crypto market is eager to see whether the stock might be included in the S&P 500 index.
Wall Street Embraces Bitcoin
The listing of MSTR on MCSI and Russell 1000 comes as more of Wall Street continues to embrace Bitcoin. The listing of spot Bitcoin exchange-traded funds (ETFs) in the US has seen more traditional investors seek exposure to BTC.
During the recent quarterly disclosures, some of the largest firms on Wall Street including BNB Paribas, JPMorgan, Millennium Management, and others have all endorsed Bitcoin.
The entry of spot Ethereum ETFs into the US space could also mark more crypto absorbed into the traditional financial industry.
