- Strategy (MSTR) remains in the Nasdaq 100 after the annual reconstitution, despite ongoing scrutiny of digital asset treasury companies.
- Six companies, including Biogen and Trade Desk, were removed from the index, with six new firms added.
- Index providers are evaluating how to classify companies with significant cryptocurrency holdings as MSCI considers new rules.
- Strategy continues to be excluded from the S&P 500, despite ranking among the top 250 U.S. public companies by market value.
Strategy (MSTR) retained its position in the Nasdaq 100 following the index’s annual rebalancing. This decision comes amid heightened attention on how companies holding large amounts of cryptocurrency are classified within major stock benchmarks. The changes follow the removal of six companies from the Nasdaq 100, including Biogen, Trade Desk, and On Semiconductor, and the addition of six new firms.
Banks and investment platforms are closely following the fate of digital asset treasury companies (DATs). DATs are firms that hold a substantial portion of their corporate reserves in cryptocurrencies. MSCI, a leading index provider, recently launched a review to determine if companies holding more than 50% of their reserves in digital assets should remain eligible for its benchmarks. A final decision on this review is expected in January.
In the recent reshuffling, companies such as Biogen (BIIB), CDW Corporation (CDW), GlobalFoundries (GFS), Lululemon Athletica (LULU), On Semiconductor (ON), and Trade Desk (TTD) were removed from the Nasdaq 100 index. Newly added constituents are Alnylam Pharmaceuticals (ALNY), Ferrovial (FERF), Insmed (INSM), Monolithic Power Systems (MPWR), Seagate Technology (STX), and Western Digital (WDC). Strategy, which first joined the Nasdaq 100 in December under the technology sector, was not impacted by these changes.
Strategy has argued that its large Bitcoin holdings form the core of its business model, stating in a letter to MSCI that: “A fixed 50% threshold is difficult to apply in practice because digital asset values fluctuate with market conditions.” The company says its Bitcoin reserves are essential, not merely an investment. Crypto ETF issuer Bitwise has also publicly supported Strategy and other DATs, criticizing MSCI’s proposal for potentially adding subjectivity to what has traditionally been a rules-based index inclusion process.
Since 2020, Strategy has shifted from providing enterprise software to focusing on Bitcoin acquisition, becoming a leading digital asset treasury example. This approach has yet to gain S&P 500 inclusion, which typically excludes companies whose main value is tied to underlying assets rather than operating income flows. Despite its high market capitalization, Strategy has not met S&P 500 requirements for index inclusion.
Recently, Strategy shares edged 0.1% higher in after-hours trading following a 3.74% decline the previous session. The Nasdaq-100 tracking ETF, Invesco QQQ Trust Series 1 (QQQ), fell 0.13%. Meanwhile, Bitcoin dropped below $90,000, declining 0.6% over 24 hours. Retail sentiment on Stocktwits for both MSTR and QQQ reflected a bearish trend.
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