MicroStrategy stock (MSTR) is once again encroaching on a new all-time high thanks to its ride on the Bitcoin wave. The company is one of the largest public investors in Bitcoin, led by Michael Saylor’s backing of the cryptocurrency. With MSTR’s recent surge in share value, the company is a potential candidate for the Nasdaq-100 index ahead of an annual reshuffle later this month. This potential inclusion could be an even bigger catalyst for the stock’s performance entering 2025.

For an entry into the index, a stock listed on the Nasdaq exchange must rank among the top 100 by market value, have a minimum daily trading volume of 200,000 shares, and not be in the financial sector. MicroStrategy, a technology company, has recently ticked the first two. boxes thanks to its recent boom due to its Bitcoin investments.

MicroStrategy’s shares have soared nearly 500% this year, taking its market capitalization to $90 billion. Now, experts predict that on December 23, the bitcoin-investing firm may become the latest company to join the index. In particular, Bloomberg ETF analyst James Seyffart says that ETFs tracking the Nasdaq 100 are expected to purchase $2.1 billion worth of MicroStrategy shares. This represents about 20% of the company’s daily trading volume.

MicroStrategy to Join Both Nasdaq 100 and S&P 500?

Seyffart suggested that while joining the Nasdaq 100 is imminent, inclusion in the S&P 500 will be more challenging. This is largely due to MicroStrategy’s lack of profitability, according to the ETF analyst. However, an upcoming change in accounting rules related to Bitcoin valuations could make the company eligible for the S&P 500 in 2025. Additionally, Bloomberg ETF analyst Eric Balchunas says that the company is likely to have a 0.47% weight in the Nasdaq-100. This would make it the 40th largest holding in the index.

“MicroStrategy seems to check all the boxes to make it into the Nasdaq 100 when it is reconstituted in December,” said Art Hogan, chief market strategist at B. Riley Wealth Management.

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Furthermore, a Nasdaq 100 and S&P 500 inclusion could spur more gains for MicroStrategy stock. Currently, the company’s bitcoin holdings are valued at about $42 billion. Lately, more investment firms are including the stock in their portfolios to accurately reflect the index composition. As a result, price predictions for the stock in 2025 continue to rise, with some predictions approaching $450 between Q1-Q2 2025.

At press time, MSTR stock is nearing its ATH in stock price, trading at $402.