What Is MicroStrategy's Status in the Nasdaq 100? Bitcoin Holdings Secure Its Spot Amid Debate

MicroStrategy (MSTR)—widely known as the largest corporate Bitcoin holder—successfully retained its position in the Nasdaq 100 index (.NDX) during the annual rebalancing review, extending its year-long inclusion in the benchmark.

The company’s aggressive Bitcoin accumulation strategy, which has turned it into a proxy for BTC exposure, continues to drive its market capitalization and stock performance, keeping it above the eligibility thresholds despite ongoing debate about whether its model resembles an investment fund more than a traditional software business. For investors tracking crypto trends, corporate treasuries, and blockchain integration in public markets as of late 2025, MicroStrategy’s sustained Nasdaq 100 presence underscores Bitcoin’s growing influence on traditional equity indices.

What Happened in the Nasdaq 100 Rebalancing?

The Nasdaq 100 undergoes annual re-ranking in December based on market capitalization, with adjustments for liquidity and eligibility criteria. MicroStrategy, which joined the index in December 2024, maintained its spot thanks to a market cap hovering around $60–70 billion—bolstered by its ~650,000 BTC holdings valued at tens of billions. No removal was announced, allowing MSTR to remain among the top 100 non-financial Nasdaq-listed companies.

• Retention Confirmed: December 13, 2025 rebalancing kept MSTR in the index.
• Year-Long Stint: Included since December 2024; now entering second year.
• Market Cap Driver: Bitcoin holdings amplify valuation multiple.
• No Changes Needed: Met all weight, volume, and capitalization requirements.
• Index Impact: Continues exposure via NDX-tracking ETFs and funds.

Why Does MicroStrategy’s Bitcoin Strategy Matter for Nasdaq Inclusion?

MicroStrategy pioneered the corporate Bitcoin treasury model in 2020, using debt and equity raises to acquire BTC as a primary reserve asset. This approach has propelled its stock far beyond software peers, correlating closely with Bitcoin’s price and attracting investors seeking leveraged BTC exposure. The strategy’s success—spawning copycats like Metaplanet and Semler Scientific—has kept MSTR’s market cap elevated, securing index membership despite minimal growth in its legacy enterprise analytics business.

• Holdings Scale: ~650,000 BTC (~3% of total supply) as of late 2025.
• Valuation Proxy: Stock trades at premium to net asset value (NAV).
• Copycat Trend: Dozens of public firms now hold BTC treasuries.
• Performance Link: MSTR up/multiple-fold since strategy launch.
• Index Eligibility: Market cap threshold easily met via BTC correlation.

What Are the Criticisms of MicroStrategy’s Business Model?

Some analysts and market watchers argue MicroStrategy functions more like a closed-end Bitcoin investment fund than a traditional software company, given Bitcoin holdings dwarf its operational revenue. This has raised questions about sustainability, accounting treatment, and whether the model justifies its valuation premium. Critics note potential risks from debt-financed buys and volatility, though proponents view it as innovative treasury management.

• Fund-Like Comparison: Heavy BTC focus over core software sales.
• Valuation Debate: Trades at 2–3x NAV premium at times.
• Debt Strategy: Convertible notes fund ongoing accumulation.
• Analyst Concerns: Questions on long-term viability if BTC stagnates.
• Counterview: Legal corporate treasury; no regulatory reclassification yet.

How Does Nasdaq 100 Inclusion Benefit MicroStrategy?

Remaining in the Nasdaq 100 ensures passive inflows from index-tracking funds (e.g., Invesco QQQ), enhances liquidity, and boosts visibility among institutional investors. It also validates the Bitcoin treasury strategy in mainstream finance, potentially encouraging more corporate adoption.

• Passive Flows: Billions in AUM track NDX, buying MSTR shares.
• Liquidity Boost: Higher trading volume and tighter spreads.
• Credibility Signal: Mainstream acceptance of BTC-linked equities.
• Benchmark Status: Joins tech giants despite software roots.
• Broader Trend: Highlights crypto’s equity market penetration.

Broader Implications for Bitcoin Treasuries and Markets

MicroStrategy’s continued index presence reflects Bitcoin’s maturation as a corporate asset class, with public companies collectively holding significant supply. This structural demand supports price floors, though macro sensitivity remains—as seen in 2025’s range-bound action.

• Treasury Trend: More firms exploring BTC reserves.
• Index Influence: Crypto proxies in major benchmarks.
• Volatility Link: MSTR amplifies BTC moves for equity investors.
• Regulatory Watch: No current push to reclassify as fund.
• 2026 Outlook: Retention could hinge on BTC performance and cap stability.

In summary, MicroStrategy retained its Nasdaq 100 spot on December 13, 2025, thanks to Bitcoin-driven market cap, extending its index tenure amid debate over its fund-like treasury model. This milestone reinforces corporate BTC adoption while highlighting risks and rewards of the strategy. Track official Nasdaq announcements for future rebalancings, review treasury trackers for holdings updates, and prioritize secure practices for any digital asset exposure—focusing on education and compliant platforms in blockchain markets.