MicroStrategy Inc., known for holding a large amount of Bitcoin, will now be included in the MSCI World Index. The company’s shares have been performing well, leading to its addition in the index which will take effect at the end of the month.
This move highlights the increasing presence of cryptocurrency in traditional investment portfolios, as many funds track the MSCI World Index. MicroStrategy’s co-founder, Michael Saylor, has been a strong advocate for Bitcoin and decided to invest some of the company’s cash in the cryptocurrency during the Covid-19 crisis. As of April 26, the company holds 214,400 Bitcoin.
MicroStrategy’s shares have seen a significant increase over the past year, outperforming Bitcoin’s surge. The company is often seen as a way to gain exposure to Bitcoin, but this role has been questioned following the introduction of US Bitcoin ETFs in January.
Despite the company’s strong performance, Kerrisdale Capital Management LLC has decided to short the stock as it believes the stock is overvalued compared to the digital asset’s price. Four analysts have buy ratings on MicroStrategy, with an average 12-month price target of $1,678.75, which is almost 30% above the current stock price.
Overall, MicroStrategy’s inclusion in the MSCI World Index reflects the growing influence of cryptocurrency in traditional financial markets.