Bitcoin Hoarding Companies Maintain Strong Market Presence

Bitcoin hoarding giant Strategy has maintained its position in the Nasdaq 100 as of Friday, continuing its year-long presence in the index. Analysts have raised questions about Strategy's business model, which focuses on buying and holding bitcoin, and some market watchers believe it resembles an investment fund.

Concerns are growing regarding the sustainability of crypto treasury companies, as their shares have shown extreme sensitivity to bitcoin's price fluctuations. The Nasdaq recently announced that several companies, including Biogen, CDW Corporation, and Lululemon Athletica, will be removed from the benchmark index, while new entrants include Alnylam Pharmaceuticals and Seagate Technology.

Strategy, originally a software company named MicroStrategy, pivoted to bitcoin investing in 2020 and was included in the Nasdaq 100 last December under the technology sub-category. Global index provider MSCI has also expressed concerns about the inclusion of digital-asset treasury companies in its benchmarks and is expected to decide in January whether to exclude Strategy and similar companies.

The Nasdaq changes will take effect on December 22.