"Investors closely watched the ( Nasdaq 100's annual reconstitution to see if Strategy ( NASDAQ:MSTR ) - the largest corporate holder of BitcoinCRYPTO: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."
"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."
Nasdaq's annual Nasdaq 100 reconstitution retained Strategy (MSTR) in the index, with six companies dropped and six added effective Dec. 22. Strategy remains the largest corporate holder of Bitcoin and carries a bitcoin-heavy balance sheet. MSCI is proposing to exclude companies whose digital asset holdings exceed 50% of total assets from its Global Investable Market Indexes, viewing such digital asset treasury companies (DATs) as resembling investment funds rather than traditional operating firms. MSCI cited increased volatility from crypto price swings and the risk of forced sales during downturns and framed the proposal as preserving index purity and protecting traditional investors. Opponents argued DATs actively manage assets to generate returns and that the rule would be discriminatory. A decision is expected by January 15, 2026, with changes taking effect in February.
Read at 24/7 Wall St.
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