Bitcoin-heavy agency Technique (MSTR) will stay within the Nasdaq 100 index, surviving the annual reshuffle that noticed a number of family names dropped.
The agency, which started as enterprise software program supplier MicroStrategy, pivoted in 2020 to stockpiling bitcoin as its core technique. It has since then accrued 660,624 BTC value $59.55 billion, and it was added to the index final December.
In contrast to conventional corporations within the index, Technique’s efficiency is tightly tethered to bitcoin’s worth. Its enterprise mannequin, which entails shopping for and holding huge portions of the cryptocurrency, has impressed comparable strikes by smaller corporations however drawn criticism from analysts and index suppliers.
That criticism has seen some analysts argue the agency acts extra like a bitcoin funding car than a standard enterprise. The Nasdaq 100 index focuses on non-financial corporations listed within the Nasdaq, which implies being categorised a holding firm would imply it’s ineligible for inclusion.
MSCI, a significant index supplier, has flagged issues about crypto treasury corporations like Technique and is anticipated to subject a call in January on whether or not to exclude them from its benchmarks.
Technique, which has been included in these indexes as a tech firm given its enterprise intelligence operations, has responded to MSCI’s proposal to exclude these corporations, arguing these are working companies and never funding funds.
Nasdaq dropped six corporations from the index on this yr’s rebalance, together with Biogen, Lululemon, and Commerce Desk. Replacements embody Alnylam Prescription drugs, Ferrovial, and Seagate Know-how. The adjustments take impact December 22.
