Strategy Keeps Nasdaq 100 Spot Despite Growing Debate Over Its Bitcoin-Focused Model

Strategy — the company formerly known as MicroStrategy — will remain in the Nasdaq 100, extending its position in one of the most closely followed equity benchmarks. The index decision, announced Friday, arrives as analysts, index providers, and institutional investors continue to question how a company driven almost entirely by Bitcoin holdings fits within a mainstream stock index built to reflect the performance of major operating businesses.

Strategy shifted its identity in 2020 when it began directing its capital toward buying Bitcoin rather than expanding its legacy software operations. Since then, its market value has moved in near lockstep with the cryptocurrency. While the company still sells software, those revenues play a minimal role in shaping its stock price. Instead, investors see Strategy as a publicly listed vehicle for gaining exposure to Bitcoin, sometimes referring to it as a “corporate Bitcoin fund” rather than a technology firm.

This unusual position places Strategy in a category that traditional benchmarks were not designed to accommodate. The Nasdaq 100 tracks the largest non-financial companies listed on the exchange by market value. Strategy qualifies on size alone, but its business model blurs the line between an operating company and a digital-asset holding entity. That tension has raised questions about whether inclusion should depend solely on market capitalization or on the nature of a company’s economic activity.

The decision to keep Strategy in the index comes during a broader review by global index providers. MSCI, which manages widely used international benchmarks, has said it is evaluating whether companies whose valuations depend primarily on cryptocurrency holdings are appropriate for traditional equity indexes. MSCI will issue its decision in January, and the outcome may influence how other index builders update their rules as more companies adopt similar treasury strategies.

The latest Nasdaq reshuffle removed companies such as Biogen, GlobalFoundries, Lululemon Athletica, On Semiconductor, CDW, and The Trade Desk. Added to the index were Seagate Technology, Western Digital, Ferrovial, Alnylam Pharmaceuticals, Insmed, and Monolithic Power Systems. These changes take effect December 22.

Fund managers say the issue is less about Strategy in particular and more about what its inclusion represents. If companies whose value is driven by a single volatile asset remain eligible for major benchmarks, indexes could end up more exposed to cryptocurrency swings than intended. That exposure would flow into pension funds, ETFs, and retirement accounts that track these benchmarks automatically.

Index providers say the core issue is classification. Equity benchmarks sort companies based on their primary source of business activity, and Strategy’s filings show that its operating revenue plays a limited role in determining its market value. Because most of its valuation now reflects Bitcoin held on its balance sheet, index committees are reviewing whether it should remain grouped with technology companies or placed in a separate category.

MSCI’s upcoming January review is expected to address this directly. People familiar with the process say the firm is examining whether Bitcoin-treasury companies should be treated like traditional operating businesses or flagged as balance-sheet-driven entities, similar to how some commodity-holding firms are classified. The outcome could influence how other benchmarks evaluate similar companies later this year.

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