Michael Saylor’s Strategy Secures Nasdaq 100 Spot as MSCI Inclusion Debate Heats Up

Michael Saylor’s Strategy has maintained its Nasdaq 100 inclusion. This comes as the company faces increased scrutiny over its Bitcoin business model. At the same time, the decision about its inclusion in MSCI is still being discussed with a verdict expected in January.

Strategy Retains Nasdaq 100 Listing Despite Model Concerns

According to a Reuters report, the firm has kept its place in the Nasdaq 100 after the latest index adjustment.  This extends its stay in the benchmark to over a year. 

The group changed from developing enterprise software to a Bitcoin accumulation play in 2020. This is a move that has gone on to inspire a multitude of similar corporate treasury maneuvers.

Despite this, some commentators believe that the overall business of Strategy is becoming more characteristic of an investment fund rather than a technology operator. This is particularly due to the fluctuation of stock price being linked to that of Bitcoin. This has led questions to be raised over whether it meets the indices.

In the latest rebalancing, the Nasdaq has stripped some known stocks from the list of Nasdaq 100 stocks. Biogen, CDW Corporation, as well as other stocks, were part of this list. New stocks that joined varied from pharmaceutical stocks to computer hardware makers.

The changes are set to come into effect on December 22. The Nasdaq 100 is a tracker of the top non-financial stocks on the exchange. The firm originally joined the index last December as a technology stock.

MSCI Decision Looms for Digital Asset Treasuries

Global index compiler MSCI is still assessing whether digital asset treasury companies should remain in its indexes. The outcome is expected to arrive in January. This might see Strategy, together with other such firms, removed from MSCI’s Global Investable Market Indexes.

This has increased market attention because MSCI is reviewing its indexes. These indexes affect trillions of dollars globally. The delisting could result in some investors having to sell off their holdings.

Strategy formally objected to MSCI’s proposal. They shared that digital asset treasury companies removal might affect investors negatively. 

Presently, the decline in the company’s stocks is approximately 65% from the peak within the last year, while the decline within the current year is roughly 36%.

“The initial listing on Nasdaq was a loophole that is within the law,” said a strategist. It is predicted that the removal from the list of indexes may lead to passive funds worth more than $1.5 billion flowing out.

It is worth noting that Bitwise supported the use of digital asset treasuries. They stated that MSCI’s approach introduces subjectivity to a rule-based indexing process.