Strategy, previously known as MicroStrategy, has successfully retained its place in the Nasdaq 100 following the index’s annual rebalancing—the first since the company’s addition in December last year.
Strategy’s bitcoin holdings reach new heights
The firm is recognized as the largest corporate holder of bitcoin, now owning 660,624 BTC after a recent purchase of 10,624 bitcoin for approximately $962.7 million.
At current market prices, the value of these holdings approaches $60 billion.
For real-time figures on the company’s bitcoin treasury, see the MicroStrategy historical bitcoin holdings.
Index changes and share performance
While Biogen, CDW, GlobalFoundries, Lululemon, On Semiconductor, and Trade Desk were removed from the tech-heavy index, companies like Alnylam Pharmaceuticals and Seagate joined.
Despite maintaining its place, Strategy’s shares fell by 3.74% on the day and have declined over 15% in the past month, reflecting broader market concerns.
MSCI’s scrutiny and potential exclusion
MSCI is reviewing its classification of companies with over 50% of assets in bitcoin, potentially excluding Strategy as early as January.
JPMorgan has warned that if this occurs, up to $2.8 billion in passive fund holdings could be forced to sell. Strategy’s leadership has responded, with Executive Chairman Michael Saylor and CEO Phong Le stating in a letter to MSCI:
“The company is not a passive bitcoin accumulator but an operating enterprise that issues preferred stock and other instruments to finance new purchases.”
Fundraising to address market concerns
To address fears around its ability to meet dividend and debt obligations, Strategy recently raised $1.44 billion. CEO Phong Le explained:
“There was FUD that was put out there that we wouldn’t be able to meet our dividend obligations, which causes people to pile into a short Bitcoin bet.”
Executive Chairman Saylor has also been engaging with sovereign wealth funds and family offices to promote bitcoin as “digital capital” and “digital gold,” aiming to attract more institutional investment.
