Strategy Stays in Nasdaq 100 as Bitcoin Model Faces Scrutiny
Bitcoin-focused firm Strategy remains in the Nasdaq 100 despite growing concerns that its business model mirrors an investment fund rather than a tech company.
A Bitcoin Bet That Keeps Paying Index Dividends
Strategy, the company best known for amassing one of the world’s largest corporate bitcoin stockpiles, has secured its place in the Nasdaq 100 for another year-defying skepticism from analysts and index providers who are increasingly questioning whether crypto-heavy firms truly belong in major equity benchmarks.
The decision comes as Nasdaq reshuffles its influential index, removing several household names while keeping Strategy firmly embedded among the exchange’s largest non-financial companies.
From Software Roots to Crypto Treasury Giant
Strategy’s journey to the heart of Wall Street’s tech index has been anything but conventional.
Originally founded as MicroStrategy, the company built its reputation as an enterprise software provider focused on data analytics and business intelligence. That identity shifted dramatically in 2020, when the firm began converting large portions of its balance sheet into bitcoin under the leadership of executive chairman Michael Saylor.
What started as a hedge against inflation soon evolved into a defining corporate strategy. Over time, Strategy transformed into the most prominent example of a bitcoin treasury company-a firm whose valuation and investor appeal are tightly linked to the price of cryptocurrency.
Despite this evolution, Nasdaq admitted Strategy into the Nasdaq 100 in December last year, classifying it under the index’s technology segment.
Nasdaq Rebalances While Strategy Holds On
In its latest annual reconstitution, Nasdaq confirmed that Strategy would remain in the Nasdaq 100, extending its run in the benchmark through 2025.
At the same time, the exchange announced the removal of several established companies, including:
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Biogen
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CDW Corporation
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GlobalFoundries
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Lululemon Athletica
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ON Semiconductor
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The Trade Desk
Replacing them are new entrants such as:
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Alnylam Pharmaceuticals
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Ferrovial
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Insmed
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Monolithic Power Systems
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Seagate Technology
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Western Digital
The changes are scheduled to take effect on December 22, reshaping the index that tracks the largest non-financial companies listed on Nasdaq by market capitalization.
Strategy’s continued inclusion stands out, given ongoing debates about whether its business activities align with the spirit of a technology benchmark.
A Tech Stock or a Bitcoin Proxy?
Market analysts and institutional investors remain divided over Strategy’s classification.
Some observers argue that the company now functions less like a traditional operating business and more like a bitcoin investment vehicle, noting that its stock price frequently mirrors cryptocurrency price movements rather than software sector fundamentals.
This volatility has fueled broader concerns about the rise of crypto treasury companies, whose shares can swing sharply alongside bitcoin’s gains and losses. Critics warn that such sensitivity may introduce additional risk into index-tracking funds and retirement portfolios that automatically hold Nasdaq 100 constituents.
Index providers themselves have begun to take notice.
MSCI, one of the world’s most influential index firms, has publicly flagged concerns about the growing presence of digital-asset treasury companies in its benchmarks. The firm is expected to decide in January whether Strategy, and similar companies-should be excluded from certain MSCI indices.
What Strategy’s Inclusion Signals for Markets
Strategy’s continued position in the Nasdaq 100 carries implications that extend beyond a single stock.
For one, it underscores how bitcoin has moved from the fringe to the financial mainstream, embedded not only in corporate balance sheets but also in widely tracked equity indices. As long as Strategy remains a Nasdaq 100 constituent, its stock will continue to be held by countless passive funds, ETFs, and retirement portfolios tied to the benchmark.
At the same time, the debate highlights a growing tension in index construction: how to classify companies whose value is driven less by operating revenue and more by financial assets.
If MSCI or other index providers ultimately move to exclude crypto treasury firms, it could trigger forced selling by funds that track those indices, potentially increasing volatility for Strategy’s shares.
For now, Nasdaq’s decision suggests a willingness to tolerate evolving business models, even as traditional definitions of “technology company” continue to blur.
A Test Case for the Future of Index Investing
Strategy’s ability to retain its spot in the Nasdaq 100 reflects both the company’s market size and the unresolved questions surrounding crypto-focused corporations.
As bitcoin becomes more deeply intertwined with public markets, index providers, regulators, and investors will be forced to confront a central issue: whether companies built around digital assets should be treated like operating businesses-or financial instruments.
With MSCI’s January decision looming and crypto markets as volatile as ever, Strategy may soon become a defining test case for how modern indices adapt to the changing shape of corporate America.
(Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Market conditions and index compositions are subject to change.)
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