Strategy has retained its position in the Nasdaq 100 following the index’s annual rebalancing, marking its first successful review since joining the benchmark in December last year. The company’s inclusion comes amid growing debate over how firms with large digital asset holdings should be classified within major equity indexes.
Formerly known as MicroStrategy, Strategy has become the world’s largest corporate holder of Bitcoin. The company disclosed last week that it purchased an additional 10,624 Bitcoin for approximately 962.7 million dollars. With that acquisition, Strategy’s total Bitcoin holdings now stand at 660,624 BTC, valued at close to 60 billion dollars based on current market prices.
The latest Nasdaq 100 reshuffle removed companies including Biogen, CDW, GlobalFoundries, Lululemon, On Semiconductor and Trade Desk. New entrants to the index included Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate and Western Digital, according to data cited by Reuters.
Despite maintaining its place in the index, Strategy shares closed the trading session down 3.74 percent. The stock has struggled in recent weeks, falling more than 15 percent over the past month as broader concerns around its balance sheet and exposure to Bitcoin continue to weigh on investor sentiment.
Index classification debate puts Strategy under pressure
Strategy’s continued presence in the Nasdaq 100 highlights a deeper debate within index providers and asset managers. The company’s business model has increasingly blurred the line between an operating firm and a digital asset investment vehicle, a distinction that has drawn attention from MSCI.
MSCI has begun reviewing how to classify companies that raise capital primarily to acquire cryptocurrencies. One proposal under consideration would exclude firms whose crypto holdings exceed 50 percent of total assets. Such a rule could put Strategy at risk of removal from MSCI indexes as early as January.
JPMorgan analysts have warned that up to 2.8 billion dollars worth of Strategy shares held by passive investment funds could be forced to sell if MSCI proceeds with changes to its classification criteria. Forced selling from index tracking funds could further pressure the company’s stock price.
Strategy’s leadership has publicly pushed back against the notion that the firm is merely a passive Bitcoin holder. In a letter sent to MSCI on December 10, Executive Chairman Michael Saylor and Chief Executive Officer Phong Le argued that Strategy operates as an active enterprise. They pointed to the company’s issuance of preferred stock and other financial instruments as evidence of an ongoing operating business designed to fund strategic Bitcoin purchases.
Strategy raises capital to counter market concerns
To address concerns around its financial stability, Strategy recently raised 1.44 billion dollars. The move was aimed at easing fears that the company could struggle to meet dividend and debt obligations if its share price continued to decline.
Phong Le said there had been growing fear, uncertainty and doubt in the market suggesting Strategy might fail to meet dividend commitments. He added that such concerns encouraged traders to build short positions tied to Bitcoin and the company’s stock.
Michael Saylor has continued to advocate for Bitcoin’s role within institutional portfolios. Speaking at the Bitcoin MENA event in Abu Dhabi, he said he has been meeting with sovereign wealth funds, bankers and family offices to frame Bitcoin as digital capital and digital gold. Saylor also outlined his vision for a new category of digital credit built on top of Bitcoin that could generate yield while reducing volatility.
As Strategy navigates index reviews, market volatility and regulatory scrutiny, its position in the Nasdaq 100 underscores how deeply digital assets are intersecting with traditional financial benchmarks. Whether Strategy can maintain its index status in the face of evolving classification rules remains a key question for investors heading into the new year.
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