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Strategy (MSTR) retained its spot in the Nasdaq 100 after the annual reconstitution. The company avoided removal despite holding over 50% of assets in Bitcoin.
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MSCI is consulting on excluding Strategy and similar firms from its indexes by February 2026. JPMorgan estimates exclusion could trigger $8.8B in outflows.
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Strategy stock has declined 39% year-to-date and sits over 60% below its peak. A decision is expected by Jan. 15.
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Investors closely watched the Nasdaq 100‘s annual reconstitution to see if Strategy (NASDAQ:MSTR) — the largest corporate holder of Bitcoin (CRYPTO:BTC) — would lose its spot due to its bitcoin-heavy balance sheet. On Friday, Nasdaq announced the changes, and Strategy survived the cut, avoiding removal during a reshuffle that dropped six companies and added six more that will take effect on Dec. 22.
In response, Executive Chairman Michael Saylor posted on X: “The Bitcoin hoarding will continue until the complaining stops.” The statement reflected bravado, even though Strategy continues to face scrutiny. Just days earlier, Saylor and CEO Phong Le had sent a letter to MSCI (NYSE:MSCI) challenging its proposed exclusion of crypto treasury firms.
MSCI is considering excluding companies whose digital asset holdings exceed 50% of their total assets from its Global Investable Market Indexes. It views these digital asset treasury companies (DATs) as resembling investment funds rather than traditional operating businesses, blurring the lines in equity benchmarks. they also introduces risk such as increased volatility from crypto price swings and the possibility of forced sales during downturns.
The proposal aims to maintain “index purity” for core equity benchmarks, protect traditional investors from excessive risk, and address the fact that these firms resemble investment vehicles. A decision is expected by January 15, 2026, with the decision taking effect in February.
Last week, Saylor and Le submitted a 12-page letter to MSCI’s Equity Index Committee opposing the rule. They argued DATs are operating companies, not funds, and called the proposal discriminatory. The letter highlighted five main objections:
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DATs are operating businesses, not investment funds. They actively manage assets to generate returns via Bitcoin-backed securities and maintain operational flexibility, similar to oil companies or REITs.
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The 50% threshold for digital assets is discriminatory, arbitrary, and unworkable. It unfairly targets one asset class while ignoring concentrations in others, such as oil and real estate, while monitoring would cause index instability because of price swings and accounting differences (GAAP vs. IFRS).
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The proposal inappropriately injects policy judgments into indexing. MSCI should remain neutral and reflect market evolution without judging business models.
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The proposal conflicts with federal strategy and chills innovation. It opposes U.S. pro-digital asset policies, potentially diverting capital and harming growth.
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If DATs are to be treated differently, extend the review: The review process is rushed and lacks a detailed explanation of concerns.
