Bitcoin-Heavy MicroStrategy Makes MSCI World Index with $13 Billion Bitcoin Stash

Bitcoin-Heavy MicroStrategy Makes MSCI World Index with $13 Billion Bitcoin Stash
  • Bitcoin’s rally boosts MicroStrategy’s stock, which also outperforms BTC itself.
  • MicroStrategy is added to the prestigious MSCI Global Standard Indexes, reflecting wider crypto acceptance.
  • The company’s inclusion in the index marks a significant recognition of cryptocurrencies in mainstream finance.

Bitcoin-bull Michael Saylor would have all the reasons to be smiling these days, not only is BTC rallying, boosting MicroStrategy which is heavily invested in the asset, but the company is also outperforming BTC. Additionally, a major global finance player just announced it will add the company, founded by Saylor to one of its most prestigious indices.

Related: Market Analyst Discusses Recent Bitcoin Run, PEPE Performance in Weekly Technical Insights with Pav Hundal

MSCI, an American finance company with headquarters in the Big Apple, said in a press release that MSTR will be added to the MSCI Global Standard Indexes. Saylor’s firm is among the three largest additions among Pure Storage and Emcor Group.

MSCI said 121 securities will be deleted from the MSCI ACWI Index and only 42 new securities will be added.

MSTR Outperforms BTC

MicroStrategy – which has been buying Bitcoin since 2020 – has seen substantial growth of its share price, with a 4X increase over the past year and has outperformed Bitcoin’s 130% increase.

BTC/USDT, MSTR, source: TradingView

At the time of writing MSTR is trading for US$1,502.89 (AU$ 2,246.10) while one Bitcoin changed hands for US$65,889 (AU$ 98,509).  

While being previously considered a proxy for Bitcoin, the correlation has been questioned since the introduction of US Bitcoin ETFs in January.

MSTR Addition Echoes Wider Crypto Adoption

These ETFs provide investors with a more direct and perhaps more regulated avenue to invest in Bitcoin, potentially reducing the necessity or appeal of investing in companies like MicroStrategy for Bitcoin exposure.

The listing in MSCI’s most prominent index could then serve as a boost to MSTR’s visibility and appeal to investors. As Bloomberg analyst Eric Balchunas points out, the MSCI ACWI Index has over US$4 trillion (AU$6 trillion) in assets benchmarked and covers 85% of the investible global equity market.

MSCI just announced it is adding Microstrategy, Pure Storage and Emcor to MSCI ACWI Index along w/ a bunch of other adds/drops. Pretty big deal as ACWI has a little over $4T benchmarked to it. Popular with institutions. $MSTR $PSTG $EME h/t @psarofagis

— Eric Balchunas (@EricBalchunas) May 14, 2024

The listing underscores the growing integration of cryptocurrencies within the mainstream financial landscape, signalling their relevance and potential as legitimate, investable assets.

This is also evident by the slew of 13F filings in the US, which has revealed billions of Dollars in banks and pension funds held in Spot Bitcoin ETFs.

By featuring a Bitcoin-heavy company like MicroStrategy, the financial industry acknowledges the importance of cryptocurrencies, encouraging more institutional investments into this sector and potentially enhancing its stability and expansion.

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