Bernstein analysts have spotlighted MicroStrategy (NASDAQ:MSTR) as a potential inclusion in the Nasdaq 100, a move that could significantly boost the company's visibility and attract fresh inflows from major ETFs like (NASDAQ:QQQ).
This development, coupled with MicroStrategy's aggressive Bitcoin (CRYPTO: BTC) acquisition strategy, led Bernstein to set a $600 target price for the company, representing a 59% upside from its current valuation.
Bloomberg Intelligence's report suggests that Nasdaq 100 inclusion could bring substantial one-time and ongoing inflows to MicroStrategy, estimated at $2.1 billion initially.
The company has rapidly scaled its Bitcoin holdings, purchasing approximately $16 billion worth in just 40 days—around 40% of its total Bitcoin position.
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Analysts note that while MicroStrategy trades at a 147% premium to its Bitcoin net asset value (NAV), the valuation premium is expected to normalize as the company continues accumulating Bitcoin.
Bernstein analysts emphasized, "MicroStrategy's ability to issue equity and convertible debt at this premium makes its current strategy sustainable through at least 2025."
Looking beyond Nasdaq 100 inclusion, Bernstein pointed to the possibility of MicroStrategy joining the S&P 500 in 2025.
This prospect hinges 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 set to take effect in 2025.
Despite a substantial run-up in MicroStrategy's stock price post-election, analysts view the current levels as a reasonable entry point, citing the supportive regulatory environment under the Donald Trump administration.
"The company's flywheel effect, driven by Bitcoin purchases and potential index inclusions, is likely to accelerate from here," Bernstein stated.
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