## Strategy defends itself against MSCI criticism and claims Nasdaq-100 position

The recent rebalancing of the Nasdaq 100 has provided Strategy with an important test – and the company passed it. While other tech stocks like Biogen and Trade Desk were removed from the index, Strategy secured its place. This is remarkable, especially since the former MicroStrategy conglomerate has now fully committed itself to Bitcoin and, with a holding of 660,624 BTC, has become the largest institutional Bitcoin investor outside the crypto and financial industry.

However, maintaining the index position should not obscure the growing challenges. The stock closed the rebalancing day down 3.74% and remains in a sustained downward trend. Last month, the MSTR stock was over 15% lower – a decline that reflects investor nervousness.

## MSCI questions business model

The real pressure comes from another side: The index provider MSCI is currently examining how companies with high crypto holdings should be classified. The focus is on the potential exclusion of firms whose digital assets make up more than 50% of total assets. For Strategy, this regulatory change could take effect as early as January. JPMorgan calculated that passive funds might have to divest up to $2.8 billion worth of Strategy shares in the worst case.

This explains why Strategy has opposed such considerations and argued in a letter to MSCI that it is an operating company and not a pure investment vehicle. The management, led by CEO Michael Saylor and CEO Phong Le, emphasizes the issuance of preferred shares and other financing instruments to fund new Bitcoin purchases.

## Financial backing through $1.44 billion capital increase

To counter speculation about financial difficulties, Strategy recently raised $1.44 billion. This was necessary to dispel doubts about meeting dividend and debt targets should the stock price continue to fall. Le also explained that rumors of potential default led to speculation against Bitcoin.

At the same time, Strategy is intensifying its communication with institutional investors. Saylor presented Bitcoin as “digital capital” and “digital gold” at the Bitcoin conference in Abu Dhabi, positioning the company as a bridgehead to a new class of investment products. According to management, Bitcoin-based “digital loans” could generate yields without the typical volatility of the asset – an approach that could attract institutional capital to the crypto sector. With the recent purchase of 10,624 Bitcoin for around $962.7 million, Strategy now holds Bitcoin worth nearly $60 billion.