Bitcoin "HODL Whale" Strategy (MSTR.US) Maintains Nasdaq 100 Position; MSCI Still Warns of Possible January Exclusion
According to the Zhichun Finance APP, on Friday, Bitcoin accumulation giant Strategy (MSTR.US) maintained its position in the Nasdaq 100 Index, continuing its status as a component stock for a year. Meanwhile, analysts continue to question its business model.
Some market observers pointed out that Strategy's pioneering "buy and hold" Bitcoin business model is more akin to the operational model of an investment fund, which has now spawned dozens of imitators.
Concerns about the sustainability of crypto asset reserve companies are growing, and their stock prices have proven extremely sensitive to Bitcoin's volatility.
Nasdaq announced that Biogen (BIIB.US), CDW Corporation (CDW.US), Globalfoundries (GFS.US), Lululemon Athletica (LULU.US), ON Semiconductor (ON.US), and Trade Desk (TTD.US) have been removed from this technology-heavy benchmark index.
The newly included component stocks are Alnylam Pharmaceuticals (ALNY.US), Ferrovial (FER.US), Insmed (INSM.US), Monolithic Power Systems (MPWR.US), Seagate Technology (STX.US), and Western Digital (WDC.US).
Strategy was originally a software company but shifted to Bitcoin investment in 2020. In December last year, it was included in the Nasdaq 100 Index, categorized under the technology sub-sector of the index.
Global index provider MSCI has also expressed concerns about including digital asset reserve companies in its benchmark index. MSCI is expected to decide in January whether to exclude Strategy and similar companies.
The adjustments to the Nasdaq index are expected to take effect on December 22. The Nasdaq 100 Index tracks the largest non-financial companies by market capitalization listed on the exchange.
Media reported in September that Nasdaq has been tightening its requirements for the digital asset reserve companies it lists. The exchange typically does not comment on its practices for including these companies in its index. Strategy did not respond to requests for comment.
Index component adjustments are closely watched, as they determine which companies can benefit from billions of dollars in passive investor fund flows. However, Strategy's founder, Michael Saylor, has generally downplayed concerns about potential exclusion from the index.
