MicroStrategy Bitcoin-Proxy added to MSCI World Stock Index – Yahoo Finance

MicroStrategy Bitcoin-Proxy added to MSCI World Stock Index – Yahoo Finance

(Bloomberg) — MicroStrategy Inc., a company best known for amassing a roughly $13 billion hoard of Bitcoin, will be included in a key global stock index following a rally in the company’s shares that exceeded the digital asset.

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The Tysons Corner, Va.-based business software maker is one of the three largest additions to the MSCI World Index based on market capitalization, MSCI Inc. said in a statement Tuesday. Index providers regularly review their gauges and the latest changes come into effect at the end of the month.

This change is an indication of how crypto exposure may increasingly seep into traditional portfolios, given that several billion dollars track or are benchmarked against the MSCI global indicator. Other such avenues include new exchange-traded funds in the US and Hong Kong that directly hold digital assets and which, over time, could attract interest from products such as multi-asset funds .

Michael Saylor, co-founder of MicroStrategy, is a prominent Bitcoin advocate. In the midst of the Covid-19 crisis, he decided to invest part of the company’s cash in the original cryptocurrency. The company held 214,400 Bitcoins as of April 26.

MicroStrategy shares have more than quadrupled over the past year, beating a nearly 130% rally in Bitcoin amid the crypto’s recovery from a 2022 rout. The company is seen as a proxy for exposure to the token, but this role has been called into question following the January debut of US Bitcoin ETFs. The stock rose about 6% to $1,377 on Wednesday.

In March, Kerrisdale Capital Management LLC said it was shorting the stock as it outpaced the rise in the digital asset’s price. MicroStrategy has four analyst Buy ratings with a 12-month average price target of $1,678.75, nearly 30% above the stock’s current level, according to data compiled by Bloomberg.

(Adds stock price in penultimate paragraph.)

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