Bitcoin-focused company Strategy (MSTR.O) maintained its place in the Nasdaq 100 index on Friday, continuing its year-long presence in the benchmark despite growing questions from analysts over its business model.
Some market observers have suggested that Strategy’s pioneering approach of buying and holding bitcoin, which has inspired numerous copycat firms, resembles an investment fund more than a traditional technology company. Concerns over the sustainability of crypto treasury firms have intensified, as their stock prices remain highly sensitive to bitcoin’s volatility.
Meanwhile, Nasdaq announced several index changes, removing Biogen (BIIB.O), CDW Corporation (CDW.O), Globalfoundries (GFS.O), Lululemon Athletica (LULU.O), On Semiconductor (ON.O), and Trade Desk (TTD.O). New entrants include Alnylam Pharmaceuticals (ALNY.O), Ferrovial (FERF.AS), Insmed (INSM.O), Monolithic Power Systems (MPWR.O), Seagate Technology (STX.O), and Western Digital (WDC.O). These changes are scheduled to take effect on December 22.
Strategy, which began as software company MicroStrategy, shifted its focus to bitcoin investing in 2020. It was added to the Nasdaq 100 last December under the technology subcategory. Global index provider MSCI (MSCI.N) has also flagged concerns about the inclusion of digital-asset treasury companies in its benchmarks, with a decision on potential exclusions expected in January.
The Nasdaq 100 tracks the largest non-financial companies by market capitalization listed on the exchange, making Strategy one of the few cryptocurrency-centric firms represented in a major U.S. equity index.
By DNU Staff