Why Did Strategy Retain Its Place in the Nasdaq 100 After the Annual Rebalance?

Strategy, Michael Saylor’s firm formerly known as MicroStrategy, maintained its position in the Nasdaq 100 index during the December 2025 annual rebalance. This retention was driven by the company meeting Nasdaq’s established criteria on market capitalization, liquidity, and sector classification—factors that are increasingly influenced by its significant Bitcoin holdings. Understanding this outcome sheds light on how cryptocurrency-linked firms are being integrated into traditional equity benchmarks.

What happened

In December 2025, the Nasdaq 100 index underwent its scheduled annual rebalance, a process governed by explicit rules focusing on market capitalization, liquidity, and sector representation. Strategy successfully retained its inclusion in the index, as confirmed by CoinDesk reporting and Nasdaq’s official rebalance documentation. This outcome was underpinned by three key factors:

Market Capitalization: Strategy’s market cap remained above Nasdaq’s minimum threshold for inclusion. Notably, its substantial Bitcoin treasury bolstered its overall asset base, indirectly supporting investor confidence and valuation. This was corroborated by Nasdaq filings and SEC disclosures from Q3 2025.
Liquidity: The company’s liquidity measures—including average daily trading volume and free float—met Nasdaq’s minimum requirements. The official December 2025 rebalance report confirmed these metrics without indicating any exceptions or special treatment.
Sector Classification: Despite Strategy’s heavy cryptocurrency exposure, it is classified within the technology-related sector for Nasdaq 100 purposes. This aligns with Nasdaq’s methodology, which prioritizes tech and related industries, and does not exclude firms based on their cryptocurrency holdings.

Further supporting this status, Invesco, the independent ETF provider managing the QQQ ETF that tracks the Nasdaq 100, confirmed that Strategy remains a constituent in its December 2025 holdings report. Bloomberg Markets also noted a relative decrease in Strategy’s stock price volatility compared to previous years, which likely contributed to its stable liquidity profile and market cap standing.

Interpretations from industry sources suggest that Strategy’s retention reflects a broader acceptance of cryptocurrency-linked firms within traditional equity indices. CoinDesk’s editorial analysis highlights this as indicative of a blending between digital asset exposure and conventional tech sector categorizations. Bloomberg commentary adds that Nasdaq’s methodology appears flexible enough to accommodate non-traditional tech companies, possibly signaling evolving market dynamics.

However, some financial industry discussions point out that Strategy’s inclusion might partly result from index rules that have yet to adapt fully to differentiate crypto-native companies from traditional technology firms. There is no public evidence that Nasdaq applied any unique thresholds or discretionary adjustments specifically to Strategy during this rebalance.

Why this matters

Strategy’s continued presence in the Nasdaq 100 is significant for several reasons. First, it underscores how cryptocurrency-linked companies are increasingly integrated into mainstream equity benchmarks, reflecting a shift in market structure where digital asset exposure is no longer peripheral but part of the core technology investment landscape. This integration can influence investor perceptions, index fund compositions, and broader capital allocation patterns.

Second, the methodology by which Nasdaq includes such firms—primarily based on market capitalization and liquidity—illustrates how cryptocurrency holdings can materially affect traditional valuation metrics. Strategy’s Bitcoin treasury acts as a quasi-asset backing, indirectly inflating its market capitalization and supporting its eligibility for inclusion. This raises questions about the comparability of firms within the index, given the unique risk profile and asset composition of crypto-linked companies.

Third, the retention highlights potential challenges for index providers in balancing methodological consistency with evolving market realities. As more firms with significant cryptocurrency exposure emerge, index rules may need to adapt to maintain transparency, investor clarity, and appropriate sector representation. The current approach, which classifies Strategy as a technology company without special adjustments for its crypto holdings, may be a transitional phase in index governance.

What remains unclear

Despite the confirmed facts, several important questions remain unanswered:

Nasdaq has not provided official guidance or commentary on how its index methodology might evolve to address firms whose valuations are heavily influenced by cryptocurrency assets rather than traditional technology revenues.
The detailed application of weighting and exclusion criteria to Strategy during the rebalance has not been publicly disclosed beyond standard methodology documents, leaving the precise impact of its Bitcoin holdings on market capitalization calculations unclear.
No public risk assessments or forward-looking analyses have been published regarding the sustainability of Strategy’s index inclusion amid potential cryptocurrency market volatility or regulatory developments affecting its Bitcoin treasury.
Nasdaq officials have not issued statements addressing the broader role or treatment of cryptocurrency-related firms within the Nasdaq 100, leading to uncertainty about future index governance in this area.
Third-party independent analysis on how index rules might adjust in response to an increasing presence of crypto-linked companies remains limited, relying mainly on indirect evidence and expert commentary rather than concrete policy signals.

What to watch next

Monitoring any official communications or methodology reviews from Nasdaq that address the treatment of cryptocurrency-linked companies in the Nasdaq 100 index.
Observing subsequent Nasdaq 100 rebalances for changes in inclusion criteria, weighting adjustments, or sector classification rules that may impact Strategy or similar firms.
Tracking regulatory developments related to cryptocurrency holdings that could affect firms like Strategy, potentially influencing their market capitalization or liquidity profiles.
Reviewing quarterly SEC filings and market disclosures from Strategy to assess any material shifts in its Bitcoin treasury or business fundamentals that could affect index eligibility.
Following ETF providers’ reporting, such as Invesco’s updates on QQQ holdings, to verify ongoing index composition and any rebalancing actions related to crypto-linked constituents.

Strategy’s retention in the Nasdaq 100 index reflects an evolving intersection between traditional equity benchmarks and the growing influence of cryptocurrency assets. While the company meets existing inclusion criteria, the lack of detailed disclosures and official guidance leaves open questions about how index methodologies will adapt to this changing landscape. The coming months and rebalances will be critical for understanding how mainstream indices reconcile the complexities introduced by crypto-linked firms.

Source: https://www.coindesk.com/business/2025/12/13/michael-saylor-s-strategy-hangs-on-to-spot-in-nasdaq-100-index. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.