#MarketNewHype Shares of MicroStrategy rose 6% in premarket trading Monday, as the software company and bitcoin buyer were set to join the tech-heavy Nasdaq 100 index that could further bolster a rally in the stock.

The $25.7 trillion index that houses the largest non-financial companies will now gain indirect exposure to bitcoin through MicroStrategy, which holds $44 billion of the digital currency on its balance sheet, or about 2% of the total supply of the world's largest cryptocurrency.

The prospect of more buying from funds that track the Nasdaq 100 could further boost MicroStrategy's stock, which has surged nearly 550% this year, alongside a jump in the price of bitcoin.

The company has more than doubled its bitcoin holdings this year through equity and debt transactions.

This could be “the start of a capital loop cycle that could potentially drive the spot price of BTC higher,” said Matthew Dibb, chief investment officer at cryptocurrency asset manager Astronaut Capital.

“ETFs like QQQ and many others would buy MicroStrategy to mirror the index’s holdings, which would drive up the price and, in turn, allow MicroStrategy to buy more BTC through debt, bond, and equity offerings.”

The largest exchange-traded fund tracking the Nasdaq-100 is the $322 billion Invesco QQQ Trust, according to Morningstar.

Bitcoin hit a record high of more than $106,000 on Monday after President-elect Donald Trump suggested he plans to create a U.S. strategic bitcoin reserve similar to its strategic petroleum reserve.

MicroStrategy shares have gained 3,200% since adopting bitcoin as a treasury asset in 2020 under co-founder Michael Saylor. It reported a net loss of $340 million for the three months ended Sept. 20, its third straight quarterly loss.

The company's market capitalization has reached more than $100 billion based on its latest pre-market share price, more than double the value of its bitcoin holdings.

“Long term, this is a significant milestone for crypto and we are bound to hear voices, both bulls and bears, speak much louder about MicroStrategy and Saylor in the months to come,” Dibb said.

Other Nasdaq 100 participants include Palantir (NASDAQ:PLTR) and Axon Enterprise (NASDAQ:AXON), Nasdaq said late Friday, replacing Illumina (NASDAQ:ILMN), Super Micro and Moderna (NASDAQ:MRNA). The reconstituted index will begin trading on Dec. 23.

Shares of Super Micro fell 10.6%, while Palantir rose 2.1%.$BTC #BTCNewATH