Post by : Saif Rahman

Strategy (MSTR.O), recognized for its substantial bitcoin holdings, has successfully kept its place in the Nasdaq 100 index, according to a report by Reuters on Friday. This marks the company’s ongoing presence in the prestigious index for a full year, despite increasing scrutiny from analysts regarding its distinctive business approach.

Market analysts assert that Strategy’s tactic of accumulating and holding bitcoin resembles more of an investment fund than that of a standard technology enterprise. The firm’s methodology has sparked interest among numerous crypto-oriented entities, yet apprehensions are mounting about the long-term viability of such models, particularly due to bitcoin's notorious volatility.

The Nasdaq recently unveiled several adjustments to its technology-focused index. Exits from the index include Biogen, CDW Corporation, Globalfoundries, Lululemon Athletica, On Semiconductor, and Trade Desk. Conversely, newcomers include Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate Technology, and Western Digital, with changes taking effect on December 22.

Originally established as a software company called MicroStrategy, Strategy shifted its focus to bitcoin investments in 2020. The company made its debut in the Nasdaq 100 last December, categorized under technology. Nevertheless, MSCI, the global index provider, has expressed concerns regarding digital-asset treasury firms appearing in major indices and is expected to render a decision in January about whether to exclude Strategy and similar entities from their listings.

Analysts are keeping a close watch on Strategy, indicating that the results of crypto treasury firms are acutely influenced by fluctuations in bitcoin prices. Despite emerging concerns, Strategy’s ongoing presence in the Nasdaq 100 underscores its acknowledged market value and impact within the cryptocurrency investment landscape.

The narrative surrounding Strategy underscores the rising significance of cryptocurrency in financial frameworks and prompts inquiries into how conventional benchmarks should adjust to accommodate companies with innovative business approaches.

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