TechFlow news, December 12 — According to Bloomberg, although MicroStrategy meets all technical requirements for inclusion in the Nasdaq-100 Index, its eligibility remains controversial. Data shows the company currently holds over $40 billion worth of bitcoin and has a total market capitalization of $98 billion, potentially ranking it as the 40th largest component of the index. However, its software business reported a net loss of $340 million in the third quarter and has posted losses in three of the past four quarters, raising market concerns about its core operations.
Lance Vitanza, an analyst at TD Cowen, said Nasdaq might reject its inclusion due to its relatively small operating scale, but such a decision would be illogical given its substantial market value. Michael Lebowitz, portfolio manager at RIA Advisors, suggested reclassifying the firm as a financial company, arguing that "without bitcoin, it would essentially be a defunct company." If successfully included, MicroStrategy would gain access to capital allocations from ETFs tracking the Nasdaq-100, which collectively manage approximately $451 billion globally.
