Shares of Microstrategy were higher on Monday after Nasdaq announced that the Bitcoin proxy would be added to the tech-heavy Nasdaq 100 index.

The stock was recently trading more than 3% higher.

Nasdaq is rebalancing Nasdaq-100 index every year. Companies flagged for inclusion are largely based on market capitalization rankings as of the last trading day in November. The shares must also meet a liquidity requirement and have a certain number of freely floating shares.

The inclusion in the index, which takes effect on December 23, comes after MicroStrategy’s massive rise this year. In 2024, the stock is up 547%, well above that S&P 500 Up 26.9% as Bitcoin price hits all-time high. Bitcoin was last trading at around $103,806.69, up less than 1% on the day.

The addition also means MicroStrategy will be included in the popular program Invesco QQQ Trust ETFwhich replicates the Nasdaq-100. This will likely result in passive inflows for MicroStrategy stock, potentially giving it a further boost.

Michael Saylor, the company’s founder and CEO, also announced on the social media site Monday morning that it now holds 439,000 Bitcoin.

MicroStrategy has been building up its Bitcoin reserves for years, making it a proxy for the digital currency.

“MSTR’s Bitcoin buying program is unprecedented on the Street, making it the largest corporate owner of Bitcoin (2% of supply, representing a market value of $44 billion),” Bernstein analyst Gautam Chhugani wrote on Monday. “Admission to Nasdaq100 further enhances MSTR’s market liquidity and further expands its capital flywheel and Bitcoin purchasing program.”

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