MicroStrategy Retains Nasdaq-100 Spot, Faces MSCI Delisting Threat

MicroStrategy, the Bitcoin-focused company led by Michael Saylor, has successfully retained its position in the Nasdaq-100 Index following the index's annual reconstitution. The update, which takes effect on December 22, 2025, secures the company's place in the influential index for another 12 months. This marks a full year since MicroStrategy first joined the Nasdaq-100 in December 2024.

Maintaining its spot in the index ensures MicroStrategy will continue to be included in major exchange-traded funds like the Invesco QQQ, which manages tens of billions of dollars in assets. However, the company faces a significant regulatory hurdle from another major index provider, MSCI.

MSCI is reviewing whether to exclude companies with more than 50% of their assets in digital assets like Bitcoin from its Global Investable Market Indexes. A final decision is expected around January 15, 2026. Analysts warn that if MicroStrategy is removed, it could trigger over $1.5 billion in outflows from passive investment funds that track MSCI indexes, potentially forcing large-scale selling of MicroStrategy stock.

The company, along with asset manager Bitwise, has formally objected to MSCI's proposed changes. They argue the removal introduces subjectivity into what should be a rule-based index construction and could negatively impact investors holding positions through index-tracking funds.

MicroStrategy's business model, which transitioned from enterprise software to a Bitcoin accumulation strategy starting in 2020, remains under scrutiny. The company holds a treasury of 660,624 BTC, worth approximately $60 billion, making it one of the world's largest corporate Bitcoin holders. While this has led to substantial profits, including a reported $2.78 billion in Q3 2025, critics argue the firm resembles a Bitcoin investment fund more than a traditional tech company.

This correlation is reflected in its stock performance, which has declined around 65% from its peak and is down nearly 36% year-to-date, closely tracking Bitcoin's price volatility. Despite the bullish news of retaining its Nasdaq-100 position, MicroStrategy's stock was down approximately 7% following the announcement.