Strategy Faces Possible Nasdaq 100 Exit as Index Review Nears

Strategy, the former enterprise-software provider that has become one of the world’s largest corporate holders of bitcoin, could be removed from the Nasdaq 100 when the annual rebalancing of the benchmark is unveiled on Friday, 12 December 2025. Several analysts say uncertainty over how the company should be classified is placing its membership in doubt, adding another layer of pressure to a share price that has already fallen sharply this year.

Inclusion Questioned Since Entry

The firm, originally known as MicroStrategy, shifted its primary focus from software sales to bitcoin accumulation in 2020. Despite that pivot, the company was admitted to the technology sub-category of the Nasdaq 100 last December. At the time, market observers questioned whether a business that now operates more like a digital-asset holding vehicle met the index’s criteria for technology companies. The distinction matters because the Nasdaq 100 tracks the largest non-financial corporations by market capitalization, and membership determines eligibility for the index’s sizeable passive investment flows.

Strategy’s market value peaked at $128 billion earlier this year amid a wave of enthusiasm for cryptocurrency-linked equities. Since then, the stock has lost 65 percent of that high and is down 36 percent year-to-date. Over the same period, bitcoin itself has slipped only 3.6 percent. On Thursday, the company’s capitalization stood at $52.7 billion, while the bitcoin on its balance sheet was worth an estimated $61 billion, according to Reuters calculations.

Financial Results Driven by Accounting Change

The company reported a net profit of $2.78 billion for the third quarter ended 30 September, reversing a $340.2 million loss in the prior-year period. The swing was largely the result of an accounting change that enabled it to recognize unrealized gains on its cryptocurrency holdings. Revenue from the legacy analytics software division totaled $128.7 million during the quarter, underscoring how small the original business has become compared with the value of the bitcoin portfolio.

Classification at Core of Debate

Steve Sosnick, chief market analyst at Interactive Brokers, said that if Strategy is “deemed to be a holding company or a cryptocurrency company rather than its legacy business as a software company, then it is susceptible to removal.” The Nasdaq exchange operator declined to comment ahead of Friday’s announcement, continuing its practice of not discussing individual eligibility decisions. In September, technology publication The Information reported that Nasdaq had tightened standards for companies whose treasuries consist largely of digital assets, but the exchange has not publicly confirmed the policy.

Chief Executive Michael Saylor has generally dismissed speculation that Strategy might be excluded from the benchmark, asserting that the firm meets all necessary requirements. Some analysts share that view, arguing that the company’s size still justifies its place and that index providers typically avoid frequent additions and deletions that could disrupt tracking funds. Nevertheless, the question of how to classify a corporation whose primary asset is cryptocurrency remains unresolved and could influence the final decision.

Broader Concerns About Crypto Treasury Models

Strategy’s situation highlights a wider debate about publicly traded companies that hold large quantities of digital assets on their balance sheets. These so-called “crypto treasury” firms have proliferated since Strategy adopted its bitcoin strategy five years ago. Because their valuations often move in tandem with the volatile price of bitcoin, index compilers must weigh the benefits of including such names against the risk of introducing additional variability to equity benchmarks.

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For passive investors, the outcome is significant. Funds that track the Nasdaq 100 are required to mirror its composition, so any deletion prompts asset managers to sell shares of the departing constituent and purchase those of the replacement. According to data from S&P Dow Jones Indices, more than $1 trillion in assets follow the benchmark or products linked to it.

Announcement Expected After Market Close

Nasdaq generally publishes changes to the Nasdaq 100 after the U.S. market closes on the designated review date, with additions and deletions taking effect before the opening bell on the next trading session. If Strategy is removed, index managers would need to reconcile the shift in weightings swiftly to maintain compliance.

Regardless of Friday’s decision, Strategy’s reliance on bitcoin price movements will continue to dominate its financial results. The firm’s next earnings report is due in late January, when investors will learn whether recent cryptocurrency market softness has produced fresh paper gains or losses under the amended accounting rules.

Crédito da imagem: Reuters