Strategy, known for its Bitcoin (BTC) focused balance sheet strategy, has maintained its position in the Nasdaq 100 index despite increasing controversy surrounding its business model.
In yesterday’s index update, the company remained in the technology-heavy Nasdaq 100, maintaining its nearly year-long membership in the index.
Some analysts in market circles argue that Strategy’s pioneering “buy and hold Bitcoin” model is closer to an investment fund than a classic operating company. This approach has led to the emergence of numerous similar companies in recent years, raising concerns about the sustainability of crypto treasury companies. The fact that the shares of these companies are extremely sensitive to sharp fluctuations in the Bitcoin price keeps the risk discussions alive.
Nasdaq announced that Biogen, CDW Corporation, GlobalFoundries, Lululemon Athletica, On Semiconductor, and Trade Desk have been removed from the index. In contrast, Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate Technology, and Western Digital have been added to the Nasdaq 100.
Strategy began its journey as MicroStrategy, a software company, and shifted its focus to Bitcoin investments in 2020. The company was included in the Nasdaq 100 under the technology subcategory last December.
On the other hand, global index provider MSCI is also expressing concerns about the positioning of companies holding digital asset portfolios in its indices. MSCI is expected to decide in January whether to remove companies like Strategy from its indices.
These changes to the Nasdaq 100 are scheduled to take effect on December 22nd.
*This is not investment advice.