Despite major index changes and ongoing debate over its business model, the bitcoin-focused company Strategy remains included
Strategy has successfully retained its place in the Nasdaq 100 index following the annual rebalancing, even as several well-known firms were removed. The updated index composition will take effect on December 22 reflecting shifts in market capitalization and eligibility criteria.
Originally operating as a business intelligence and software provider, Strategy fundamentally transformed its strategy in 2020 by making bitcoin accumulation its primary treasury approach. Since then, it has amassed more than 660,000 bitcoin valued at nearly $60 billion positioning itself as one of the largest corporate holders of the digital asset.
This unconventional model has fueled debate among market analysts and index providers. Critics argue the company functions more like a bitcoin investment vehicle rather than a traditional operating business, raising questions about whether it should qualify for technology-focused indexes. Index rules typically exclude holding companies, and the firm’s heavy reliance on bitcoin price movements has intensified scrutiny.
Adding to the uncertainty, a major global index provider is reviewing whether crypto treasury-focused companies should be excluded from benchmark indexes, with a decision expected early next year. In response, Strategy has maintained that it remains an operating business with active products and services, not an investment fund.
While six companies were removed from the Nasdaq 100 this year and three new names added, the firm’s continued inclusion highlights its strong market capitalization and ongoing relevance, despite the controversy surrounding its bitcoin-centric strategy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.