The analysts of Bernstein have highlighted MicroStrategy (NASDAQ:MSTR) as a possible inclusion in the Nasdaq 100, a move that could significantly increase the company’s visibility and attract new inflows from major ETFs such as the Invesco QQQ Trust (NASDAQ:QQQ).
This development, along with the aggressive acquisition strategy of Bitcoin (CRYPTO: BTC) from MicroStrategy, led Bernstein to set a $600 price target for the company, representing 59% upside potential from its current valuation.
The Bloomberg Intelligence report suggests that listing on the Nasdaq 100 could provide MicroStrategy with significant one-time and ongoing revenue, initially estimated at $2.1 billion.
The company has rapidly increased its Bitcoin holdings, acquiring approximately $16 billion in just 40 days around 40% of its total Bitcoin position.
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Analysts note that while MicroStrategy is trading at a 147% premium to Bitcoin’s net asset value (NAV), the valuation premium is expected to normalize as the company continues to accumulate Bitcoin.
Bernstein analysts emphasized that “MicroStrategy’s ability to issue equity and convertible debt at this premium allows it to sustain its current strategy until at least 2025.”
Looking beyond inclusion in the Nasdaq 100, Bernstein noted the possibility of MicroStrategy joining the S&P 500 in 2025.
This possibility depends on the company’s ability to recognize unrealized gains on its Bitcoin position, currently valued at $41 billion, under new Financial Accounting Standards Board (FASB) rules that go into effect in 2025.
Despite the significant rise in MicroStrategy shares following the election, analysts view current levels as a reasonable entry point, citing the favorable regulatory environment under management. donald trump.
“The company’s flywheel effect, driven by Bitcoin purchases and potential index inclusions, will likely accelerate from here,” Bernstein stated.
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