Bitcoin-heavy firm Strategy (MSTR) will remain in the Nasdaq 100 index, surviving the annual reshuffle that saw several household names fall.
The firm, which started as business software provider MicroStrategy, pivoted in 2020 to storing bitcoin as its core strategy. It has since then accumulated 660,624 BTC worth $59.55 billion and was added to the index last December.
Unlike traditional companies in the index, the strategy’s performance is closely linked to bitcoin’s price. Its business model, which involves buying and holding huge amounts of the cryptocurrency, has inspired similar moves by smaller firms, but has drawn criticism from analysts and index providers.
That criticism has seen some analysts argue that the firm operates more like a bitcoin investment vehicle than a traditional business. The Nasdaq 100 index focuses on non-financial companies listed on the Nasdaq, which means that being classified as a holding company would mean that it is not eligible for inclusion.
MSCI, a major index provider, has flagged concerns about crypto-finance 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 indexes as a technology company because of its business intelligence operations, has responded to MSCI’s proposal to exclude these companies, arguing that these are operating companies and not investment funds.
Nasdaq dropped six companies from the index in this year’s rebalance, including Biogen, Lululemon and Trade Desk. Replacements include Alnylam Pharmaceuticals, Ferrovial and Seagate Technology. The changes will come into force on 22 December.
