Bitcoin Hoarding Giant Strategy Stays in Nasdaq 100, Amidst Questions Over Its Business Model
Michael Saylor, the executive chairman and co-founder of Strategy, a company known for its bitcoin-hoarding strategy, has managed to keep the company in the Nasdaq 100 index. This comes as analysts have raised concerns about Strategy's business model, suggesting that its buying-and-holding bitcoin approach may be more akin to an investment fund than a software company. The company's inclusion in the Nasdaq 100 last December under the technology sub-category has sparked debates about the sustainability of crypto treasury companies, whose shares are highly volatile and sensitive to bitcoin's price fluctuations.
The Nasdaq 100 index, which tracks the largest non-financial companies by market capitalization, has seen some changes. Biogen, CDW Corporation, Globalfoundries, Lululemon Athletica, On Semiconductor, and Trade Desk were removed from the index, while new entrants include Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate Technology, and Western Digital. Strategy, which started as a software company called MicroStrategy, pivoted to bitcoin investing in 2020, has been a subject of scrutiny from global index provider MSCI, which is set to decide in January whether to exclude Strategy and similar companies from its benchmarks.
The Nasdaq changes are expected to take effect on December 22, and the index's composition reflects the dynamic nature of the tech-heavy exchange. As the world of cryptocurrency continues to evolve, the inclusion or exclusion of companies like Strategy from major indices will likely remain a topic of interest and debate among investors and analysts.
