Bitcoin's “hoarding giant whale” Strategy (MSTR.US) holds 100 seats in the NASDAQ, MSCI still warns to eliminate the “ruling” in January or later

The Zhitong Finance App learned that on Friday, Bitcoin hoarding giant Strategy (MSTR.US) maintained its position in the Nasdaq 100 Index and continued its position as a component of the benchmark index for a year. Meanwhile, analysts are still questioning its business model.

Some market observers have pointed out that Strategy's pioneering “buy and hold” Bitcoin business model is more similar to the operating 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 to be extremely sensitive to Bitcoin's sharp swings.

Nasdaq said that Bojian (BIIB.US), CDW (CDW.US), Globalfoundries (GFS.US), Lululemon Athletica (LULU.US), Ansemi Semiconductor (ON.US), and Trade Desk (TTD.US) have been removed from this benchmark index with a high weight in technology stocks.

Newly included constituents include Aliram Pharmaceuticals (ALNY.US), Ferrovial (FER.US), Insmed (INSM.US), Monolithic Power Systems (MPWR.US), Seagate (STX.US), and Western Digital (WDC.US).

Strategy started out as a software company but switched to Bitcoin investments in 2020. In December of last year, it was included in the Nasdaq 100 Index and falls under the index's technology subcategory.

Global index provider MSCI is also concerned about the inclusion of digital asset reserve companies in its benchmark index. MSCI is expected to decide in January whether to exclude Strategy and similar companies.

The Nasdaq index adjustment is expected to take effect on December 22. The Nasdaq 100 Index tracks the largest non-financial companies by market capitalization listed on the exchange.

The media reported in September that NASDAQ has been tightening requirements for its listed digital asset reserve companies. The exchange generally does not comment on the practice of 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 the multi-billion dollar flow of passive investors. However, Strategy founder Michael Saylor has generally downplayed concerns about possible exclusion from the index.