MicroStrategy Inc. to be Included in Key Global Equity Index Following Rally
MicroStrategy Inc., known for its massive Bitcoin holdings, is set to be included in a key global equity index after a surge in its shares surpassed the digital asset itself. The Tysons Corner-based software company will be one of the three largest additions to the MSCI World Index, according to MSCI Inc.
This move highlights the increasing integration of crypto exposure into traditional portfolios, as many funds track or benchmark against MSCI’s world gauge. Other avenues for crypto investment include new US and Hong Kong exchange-traded funds that directly hold digital assets, potentially attracting interest from multi-asset funds.
MicroStrategy’s co-founder Michael Saylor, a prominent Bitcoin advocate, made the decision to invest the company’s cash into the cryptocurrency during the Covid-19 crisis. As of April 26, the firm held 214,400 Bitcoin.
The company’s shares have more than quadrupled in the past year, outpacing Bitcoin’s 130% surge. However, the role of MicroStrategy as a proxy for Bitcoin exposure has been questioned following the debut of US Bitcoin ETFs in January.
Despite the stock’s impressive performance, Kerrisdale Capital Management LLC announced in March that it is shorting MicroStrategy’s stock, citing its outpacing of the digital asset’s price. Currently, the company has four analyst buy ratings with an average 12-month price target of $1,678.75, nearly 30% above the current stock price.
The inclusion of MicroStrategy in the MSCI World Index reflects the growing influence of crypto in traditional financial markets and the evolving landscape of digital asset investment.
