Strategy Holds Nasdaq 100 Spot as Bitcoin Model Faces Fresh Index Tests

Strategy has once again secured its position in the Nasdaq 100. The decision comes as the company is under close watch for its heavy focus on Bitcoin (BTC). 

Meanwhile, a separate decision by MSCI is still pending. The result could reshape how global markets treat companies built around digital asset holdings.

Debate Grows Over Strategy’s Place in Major Stock Indexes

In 2020, Strategy made a major shift by placing Bitcoin at the center of its financial strategy. This choice transformed it into a new type of public company. It also encouraged other firms to follow a similar path. 

Companies are now using Bitcoin as a long-term store of value on their balance sheets. Over time, this approach became one of the most talked-about trends in corporate finance. As Strategy’s Bitcoin holdings grew, so did questions about its role in major stock indexes. 

Critics argue that the company now behaves more like an investment vehicle than a technology business. They pointed out that its share price often rises and falls in line with Bitcoin, rather than company earnings or product growth. 

These concerns have led some analysts to ask whether Strategy still meets the standards used by index providers. This is especially those designed to track operating companies rather than asset-driven firms. 

Strategy Retains Spot in Nasdaq 100 While MSCI Decision Pends 

The Nasdaq 100 tracks the largest non-financial companies listed on the exchange, and Strategy first joined the index last December as a technology stock.

Despite the ongoing debate, Nasdaq chose to keep Strategy in the Nasdaq 100 after its latest index update. In contrast, Nasdaq removed several established names from the index, including Biogen and CDW Corporation. 

According to Reuters, all new changes will take effect on December 22. While Nasdaq has settled its decision, MSCI has not. The global index provider continues to review whether digital asset treasury companies should remain in its indexes. 

If MSCI decides to remove such firms, Strategy and others like it could exit the MSCI Global Investable Market Indexes. This matters greatly because MSCI indexes guide trillions of dollars in global investments. 

Any removal could force passive funds to sell shares, regardless of company performance. MSCI plans to announce its final verdict in January. 

Strategy Pushes Back as MSCI Review Raises Investor Concerns

Meanwhile, Strategy executives has formally opposed MSCI’s proposal. The company warned that removing digital asset treasury firms could harm investors by triggering forced sales and market instability. Asset manager Bitwise has also supported this view, criticizing MSCI’s approach.

However, investor concerns have already affected Strategy’s stock. Shares are down about 65% from their peak over the past year and roughly 36% so far this year. 

Market experts estimate that removal from major indexes could lead to more than $1.5 billion leaving passive investment funds. Such outflows could increase volatility and add further pressure to the stock price.