Coinspeaker
MicroStrategy Bags Addition into MSCI World Stock Index
A recent development in MicroStrategy Incorporated (NASDAQ: MSTR) has positioned the business intelligence and software firm to get listed in a major global equity index. Markedly, the firm’s shares have recorded an outstanding rally Year-to-Date (YTD), outperforming even Bitcoin (BTC). This market outlook propelled MicroStrategy’s addition to the MSCI World Stock Index.
Crypto and Traditional Finance Find Common Ground
According to a statement FROM MSCI Inc, this listing makes MicroStrategy one of the three largest additions by market capitalization. It is worth noting that these gauges are usually reviewed by index providers and every change is effected by the end of each month.
MicroStrategy’s positioning portrays how crypto exposure can find its way into traditional portfolios. This stems from the fact that huge funds are benchmarked against the MSCI gauge.
The recently launched spot crypto Exchange Traded Funds (ETFs) in the United States and Hong Kong also mark some of the TradFi assets that hold digital assets directly. It is believed that with time, other products like multi-asset funds would also join the train.
Since the Covid-19 pandemic, MicroStrategy has built a Bitcoin strategy that has inexplicably stood the test of time. The firm, led by core Bitcoin advocate Michael Saylor, has continued to acquire Bitcoin and is currently regarded as the firm with the largest BTC holding.
As of April 26, it was reported that the software firm holds approximately 214,000 BTC, valued at about $13.3 billion based on the current market value of the flagship cryptocurrency.
MicroStrategy Short Sellers Record Losses
The shares of the company equally registered notable growth in the last year. MSTR value quadrupled, surmounting Bitcoin’s 130% surge. Market observers perceive MicroStrategy as a proxy for exposure to Bitcoin, however, with the advent of US spot Bitcoin ETFs, many have had to reconsider their positioning in this regard.
A few months ago, some firms including Kerrisdale Capital Management said they were shorting the stock on the basis that it is overvalued and might decline in the future. However, the short sellers who wagered against the business intelligence company accumulated a total loss of $1.92 billion as of March 2024.
S3 Partners, a prominent financial data marketplace based in the United States noted that “Bitcoin is up over 7% in late-day trading and up almost 12% since its recent low three days ago, and as a result, crypto-related stock short sellers have incurred -$1.92 billion to their year-to-date mark-to-market losses today.”
MicroStrategy is exploring other business opportunities at the moment. During the Bitcoin For Corporations conference held earlier this month, the firm announced its plans to launch a decentralized identity solution on the Bitcoin blockchain. The proposed solution will leverage Ordinal-based inscriptions to store and retrieve information.
Per its tilt to the Web3 world through Bitcoin, this traditional firm may integrate more blockchain solutions in the near future.
