Bitcoin hoarding giant Strategy maintained its position in the Nasdaq 100 on Friday, continuing its remarkable year-long presence in the benchmark index. Despite ongoing concerns among analysts regarding its business model, Strategy’s innovative approach to acquiring and holding bitcoin has attracted attention, although critics argue that its operations more closely resemble those of an investment fund.
The growing unease surrounding the viability of crypto treasury companies stems from the volatile nature of their share prices, which are highly susceptible to fluctuations in bitcoin’s value. As market dynamics evolve, the sustainability of such firms has come under scrutiny, raising questions about their long-term prospects.
The Nasdaq announced changes to its tech-heavy index, with several companies, including Biogen, CDW Corporation, Globalfoundries, Lululemon Athletica, On Semiconductor, and Trade Desk, slated for removal. New entrants into the index include notable names such as Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate Technology, and Western Digital.
Originally established as a software company, MicroStrategy made a strategic pivot to bitcoin investing in 2020. Since then, it has been included in the Nasdaq 100, categorically placed within the technology sector. As anticipation builds, global index provider MSCI is set to evaluate the inclusion of digital-asset treasury companies within its benchmarks by January, which could lead to Strategy’s exclusion alongside similar firms.
The Nasdaq index revisions are expected to take effect on December 22, with the Nasdaq 100 designed to track the largest non-financial companies based on market capitalization listed on the exchange.
