MSCI Inc. has made an exciting announcement regarding the May 2024 Index Review. In this update, they have decided to include Microstrategy, a company focused on bitcoin, in their prestigious MSCI World Index. This decision comes after Microstrategy’s stock has outperformed not only bitcoin but also other major investments. Currently, Microstrategy holds an impressive 214,000 bitcoins.
MSCI Inc., a renowned operator of global equity indices and provider of investment decision support tools, released the results of the May 2024 Index Review for the MSCI Equity Indexes on Tuesday. These changes will take effect at the end of May 31.
The review includes updates to the MSCI Global Standard Indexes. The company stated that “forty-two securities will be added to and 121 securities will be deleted from the MSCI ACWI Index.” Additionally, the three largest additions to the MSCI World Index, based on full company market capitalization, will be Microstrategy (USA), Pure Storage (USA), and Emcor Group (USA).
The decision to add Microstrategy to the MSCI World Index came as a result of the company’s stock rally, which outperformed bitcoin. Since implementing their BTC strategy on August 10, 2020, Microstrategy’s stock has shown remarkable performance compared to cryptocurrency, the S&P 500, the Nasdaq, gold, silver, and major tech stocks. At the time of writing, bitcoin is trading at $65,025.
As of April 26, Microstrategy holds 214,400 BTC. Michael Saylor, the founder and executive chairman of the company, recently expressed his belief that capital will continue to flow from other asset classes, such as gold and real estate, into bitcoin. He believes that bitcoin is technically superior to these asset classes, and the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has opened the doors for institutional capital to enter the bitcoin ecosystem. In February, he also stated that BTC has become the most popular investment asset.
What are your thoughts on Microstrategy being added to the MSCI World Index? Let us know in the comments section below.
