Strategy survives Nasdaq reshuffle amid debate over crypto-heavy companies
Strategy retained its place in the Nasdaq 100 during this year’s annual rebalancing, marking its first successful review since joining the index in December last year.
Formerly known as MicroStrategy, the company has become the largest corporate holder of Bitcoin, reports Cointelegraph.
Its most recent purchase added 10,624 BTC for roughly $962.7 million, bringing total holdings to 660,624 Bitcoin worth nearly $60 billion. The latest Nasdaq reshuffle removed Biogen, CDW, GlobalFoundries, Lululemon, On Semiconductor and Trade Desk, while adding firms such as Alnylam Pharmaceuticals, Seagate and Western Digital, according to Reuters. Despite remaining in the index, Strategy shares fell 3.74% on the day. The stock has declined more than 15% over the past month amid broader crypto market weakness.
MSCI review raises questions about Strategy’s classification
Strategy’s continued inclusion in major equity benchmarks has drawn increased scrutiny as index providers debate how to treat crypto-heavy balance sheets. MSCI is reviewing whether companies whose digital asset holdings exceed 50% of total assets should remain eligible for certain indices. Such a change could affect Strategy as early as January, with JPMorgan estimating that up to $2.8 billion in passive fund holdings could be forced to sell. Strategy’s leadership has strongly opposed the idea.
In a Dec. 10 letter to MSCI, Executive Chairman Michael Saylor and CEO Phong Le argued the firm operates as an active enterprise rather than a passive investment vehicle, citing its issuance of preferred stock and other structured instruments to fund Bitcoin acquisitions.
Capital raise aims to counter market fears and reinforce long-term strategy
To address concerns over dividend and debt obligations, Strategy recently raised $1.44 billion, adding a sizable U.S. dollar reserve to its balance sheet. CEO Phong Le said the move was intended to neutralize “FUD” suggesting the company could be forced to sell Bitcoin if its share price declined further. Speaking at the Bitcoin MENA event in Abu Dhabi, Michael Saylor said he has been engaging sovereign wealth funds, bankers and family offices to promote Bitcoin as “digital capital” and “digital gold.” He also outlined plans to develop a form of “digital credit” built on Bitcoin that could generate yield without the asset’s typical volatility. The company’s approach reflects a broader effort to position Bitcoin as a core institutional asset rather than a speculative holding.
Recently we wrote that Strategy faces possible exclusion from major stock indexes, including the Nasdaq 100 and MSCI’s Global Investable Market Indexes, due to its significant bitcoin holdings.
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