Tesla, Nvidia, PayPal and Mercado Libre have taken bitcoin seriously in their business strategies.
The index includes non-financial companies, which is why Blackrock and more management firms are not included.
The Nasdaq 100 is a United States stock index that takes the values of the hundred most important non-financial companies listed on the stock exchange of the same name. Nasdaq announced yesterday, December 13, the results of the annual reconstitution of its index: starting Monday, December 23, 2024, it will see MicroStrategy included, the company with the most bitcoins in the world. Although a company that gave such a central role to Bitcoin had never reached this index, the crypto asset has been present, noticeably or timidly, for years among the hundred best valued companies in the United States.
For example, Bitcoin also reached Nasdaq 100 through Tesla, the electric car company. Although differing in methods, Tesla was one of the first to do something similar to what MicroStrategy is doing: use BTC as a store of value or company savings fund.
Today it is known that they have more than 10,000 BTC stored for the long term between different wallets according to Arkham Intelligence, a data firm that monitors and identifies on-chain activity. At some point they were what MicroStrategy is today: the company with the most bitcoins in the world. The relationship of Tesla and Bitcoin has been more ambiguous and less convinced, however.
On May 12, 2021, Tesla stopped accepting bitcoin (BTC) as a payment method due to “environmental concerns.” Elon Musk was concerned that the use of fossil fuels such as coal was being used too much to mine the crypto asset. The adventure of accepting payments in bitcoin lasted just over a month, as reported by CriptoNoticias.
Tesla and MicroStrategy have been, without a doubt, perhaps along with Mercado Libre, the companies in the select stock index that have bet the most on bitcoin. However, other companies in the ranking have more indirect but stable relationships with bitcoin, and not exactly using it as a treasury asset. Rather, offering financial, technological services and innovations with or for the currency.
Bitcoin, a subtle presence on the Nasdaq 100 before MicroStrategy
Although the computing company NVIDIA is not directly dedicated to bitcoin, Its GPUs (Graphic Processing Units) were widely used for Bitcoin mining before this industry became more efficient with the creation and use of ASIC (Application Specific Integrated Circuit). NVIDIA’s share price has risen sharply since 2022. The demand for graphics processing units by the bitcoin and cryptocurrency mining market has contributed to this growth.
For its part, PayPal has integrated bitcoin (BTC) into its platform, and Today it allows users in certain regions of the world to buy, sell and hold this and other crypto assets. Even what is still one of the most used payment gateways in the world continues to support bitcoin. As reported by CriptoNoticias, since September merchants of this payment application can now transfer their bitcoins to external addresses.
Bitcoin has also been reviled by Nasdaq 100 companies
On the contrary, it is clear that several Nasdaq 100 companies have shied away from bitcoin, directly or indirectly. In March 2019, Starbucks clarified that would not accept direct payments with Bitcoin in their storesdenying previous rumors that indicated he would do so.
Microsoft, for its part, would have said no to bitcoin. On December 10, 2024, Microsoft shareholders voted against evaluating investment in Bitcoin for the corporate treasury, despite recommendations from Michael Saylor and the success of MicroStrategy. They cited Bitcoin’s volatility as a reason for the refusal.
MicroStrategy’s inclusion in the Nasdaq 100 reflects the growing acceptance of bitcoin-based corporate strategies. Despite the consistent presence of bitcoin in the North American stock index, a company that gave so much weight to bitcoin in its operational and corporate strategy has never been part of it.
MicroStrategy was known for its business intelligence and data analytics solutions until it initiated a bitcoin accumulation strategy in 2020. Since then, MSTR stock has risen nearly 3,000%, going from $15 to over $400 per share.