Strategy retains Nasdaq 100 index spot amid MSCI risks

The future of Strategy, the largest corporate Bitcoin holder, has been thrown into question after index provider MSCI began a methodology review. During the latest adjustment to the Nasdaq 100 index, companies such as Biogen, CDW, GlobalFoundries, Lululemon, On Semiconductor, and Trade Desk were removed. Their places were taken by Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate, and Western Digital.

Market Reaction

Despite the positive outcome of the revision, Strategy shares closed the day down 3.74%. The company's shares have lost more than 15% over the past month. This decline occurred amid growing concerns about a possible exclusion from the index.

Risk of Delisting Due to Asset Classification

Strategy's presence on the Nasdaq 100 has attracted attention not only because of its unusual business model but also because of ongoing debate over whether the company is an operating entity or, in fact, an investment fund. These issues intensified this year when MSCI began revising its approach to classifying firms that raise capital primarily for the purchase of digital assets.

The index provider is considering delisting companies whose crypto holdings exceed 50% of total assets. This could affect Strategy as early as January 2026.

Potential Consequences

JPMorgan analysts warned that if delisted, passive funds would be forced to sell up to $2.8 billion in Strategy shares. This could put significant pressure on the company's share price.

Strategy's Response

Strategy management disputed MSCI's position. In a letter sent on December 10, Michael Saylor and CEO Phong Le stated that the company is not a passive accumulator of Bitcoin. They described it as an operating entity that issues preferred shares and other instruments to finance new purchases.

Fighting FUD

In December, Strategy launched a $1.44 billion fund to combat FUD (fear, uncertainty, and doubt) surrounding its business model and assets. This move is aimed at bolstering investor confidence and supporting its market position.

In Conclusion

Strategy's future in the Nasdaq 100 index remains uncertain, and the company faces significant challenges in light of MSCI's asset classification review. However, the company's management is actively working to demonstrate its operational nature and protect its market interests.