Bitcoin-based Strategy (MSTR) will remain on the Nasdaq 100 index, surviving the annual shakeup that saw several well-known names fall.
The company, which began as a MicroStrategy enterprise software provider, moved in 2020 to storing bitcoins as its primary strategy. It has since accumulated 660,624 BTC worth $59.55 billion, and was added to the index last December.
Unlike traditional companies in the index, Strategy’s performance is closely tied to the price of bitcoin. Its business model, which involves buying and holding massive amounts of the cryptocurrency, has inspired similar moves by smaller companies but has drawn criticism from analysts and index providers.
That criticism has led some analysts to argue that the company acts more like a bitcoin investment vehicle than a traditional business. The Nasdaq 100 Index focuses on non-financial companies listed on the Nasdaq, meaning that being classified as a holding company would mean it is not eligible for inclusion.
MSCI, a major index provider, has raised concerns about crypto treasury companies like Strategy and is expected to issue a decision in January on whether to exclude them from its benchmarks.
Strategy, which has been included in these indices as a technology company for its business intelligence operations, has responded to MSCI’s proposal to exclude these companies, arguing that they are operating businesses and not investment funds.
Nasdaq removed six companies from the index in this year’s rebalancing, including Biogen, Lululemon and Trade Desk. Replacements include Alnylam Pharmaceuticals, Ferrovial and Seagate Technology. The changes will take effect on December 22.
