(Bloomberg) — MicroStrategy, best known for amassing about $13 billion in Bitcoin, will be included in major global stock indexes after its stock rally has outpaced digital assets. Become.
Most Read Articles on Bloomberg
MSCI Inc. said in a statement Tuesday that the Tysons Corner, Virginia-based enterprise software maker is one of the three largest additions to the MSCI World Index based on market capitalization. Index providers regularly review their gauges and the latest changes take effect at the end of the month.
The shift shows how crypto exposure is likely to increasingly find its way into traditional portfolios, with billions of dollars being tracked or benchmarked to MSCI's global standards. Other such vehicles include new US and Hong Kong exchange-traded funds that directly hold digital assets and may attract interest in products such as multi-asset funds over time.
MicroStrategy co-founder Michael Saylor is a prominent Bitcoin supporter. Amid the Covid-19 crisis, he decided to invest some of his company's cash into an original cryptocurrency. The company held 214,400 Bitcoins as of April 26th.
MicroStrategy's stock has more than quadrupled in the past year, outpacing Bitcoin's nearly 130% surge amid the cryptocurrency's recovery from the 2022 crash. The company is seen as an agent for exposure to the token, but that role has been called into question following the debut of a US Bitcoin ETF in January.
Kerrisdale Capital Management LLC announced in March that it was shorting the stock as it outpaced the rising price of digital assets. Four analysts have rated MicroStrategy a buy, with an average 12-month price target of $1,678.75, nearly 30% above the stock's current level, according to data compiled by Bloomberg.
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
