Bitcoin-focused firm Strategy (MSTR) retained its position in the Nasdaq 100 on Friday, marking a full year in the benchmark index even as analysts question the long-term viability of its business approach.
Originally founded as software company MicroStrategy, Strategy pivoted to bitcoin investing in 2020 and has since become known for its buy-and-hold strategy with cryptocurrency. This approach has inspired numerous similar companies, but some market observers suggest that such crypto treasury firms function more like investment funds than traditional operating businesses.
Shares of crypto-focused companies have demonstrated heightened sensitivity to bitcoin price fluctuations, raising concerns about their stability and suitability for major stock indices. Global index provider MSCI has also flagged the inclusion of digital-asset treasury companies in its benchmarks and is expected to make a decision in January regarding potential exclusions.
In the latest Nasdaq 100 reshuffle, Biogen, CDW Corporation, Globalfoundries, Lululemon Athletica, On Semiconductor, and Trade Desk were removed from the tech-heavy index. New entrants include Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate Technology, and Western Digital. The changes are scheduled to take effect on December 22.
Strategy’s continued presence in the Nasdaq 100 underscores the growing mainstream recognition of cryptocurrency-oriented firms while simultaneously highlighting the debate over how such companies should be classified in traditional financial indices.
The Nasdaq 100 tracks the largest non-financial companies listed on the exchange by market capitalization, and Strategy’s inclusion reflects both its market value and the increasing influence of digital assets in the public markets.
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