Strategy maintains its position in the Nasdaq 100, Bitcoin reserve model sparks market controversy

Source: CritpoTendencia Original Title: Strategy maintains its position in the Nasdaq 100 while debate over its Bitcoin-focused model intensifies Original Link:

Strategy’s Bitcoin Reserve Strategy and Market Controversy

Strategy has successfully retained its place in the Nasdaq 100 index in recent updates, solidifying its position within this select group of technology companies.

This achievement comes amid ongoing debates among analysts, investors, and global index providers regarding Strategy’s business model—accumulating primarily in Bitcoin as its main financial asset.

Strategy’s Innovative Model and Controversy

Since 2020, when Strategy shifted from a traditional software company to a pioneer enterprise adopting Bitcoin as its main financial asset, its “buy and hold” approach has garnered both admiration and skepticism on Wall Street. Currently, dozens of companies have followed suit, significantly increasing their BTC holdings on their balance sheets.

However, some analysts believe this strategy moves these companies closer to investment tools rather than traditional tech firms. This perception has intensified debates about the true nature of Strategy and other companies employing similar models.

The volatility of Bitcoin itself has heightened the sensitivity of Strategy’s stock, reinforcing the correlation between cryptocurrency performance and company stock prices. This link has prompted regulators and investors to question the sustainability of crypto assets’ financial reporting, especially after recent tensions in digital markets.

Maintaining a Place in the Nasdaq 100 Challenges

Despite these concerns, Strategy successfully maintained its position in the Nasdaq 100 during the annual review, while other tech companies such as Biogen, CDW Corporation, GlobalFoundries, and Lululemon Athletica were removed.

The addition of new members like Alnylam Pharmaceuticals, Ferrovial, and Seagate Technology reflects the dynamic nature of the index, which comprises the largest non-financial companies by market capitalization and liquidity.

This index serves as a key reference for institutional funds and tech ETFs, assessing not only company size but also financial stability and risk profile.

Strategy was included in the index as a technology sector company in December of last year, but the review conducted by index providers (such as MSCI) in January could change the outlook for companies holding large digital asset reserves, potentially re-evaluating their inclusion.

Future of Crypto Asset Companies in Reference Indices

Strategy’s retention in the Nasdaq 100 reinforces its status as a case study in the evolving criteria for index inclusion.

Some supporters argue that crypto asset financial models represent a new form of diversification and corporate governance, while others warn that high exposure to Bitcoin’s volatility could distort the composition of indices and increase risks for traditional investors.

Decisions by MSCI in January—potentially leading to the exclusion of companies with crypto financials—will set important precedents for the role of these models within the global financial system and their acceptance in regulated markets.