MicroStrategy Keeps Its Nasdaq 100 Place — Why Saylor’s Bitcoin Bet Still Matters to Index Funds

MicroStrategy survives the Nasdaq reshuffle — and what that means today

Nasdaq’s annual rebalance has ended and MicroStrategy (MSTR) kept its seat in the Nasdaq 100. That outcome matters beyond a momentary headline: it means passive funds that track the index won’t be forced to sell the company in size, and MicroStrategy’s unique mix of equity size and large Bitcoin holdings remains a visible channel between tech-heavy US markets and crypto prices.

How the Nasdaq 100 rebalance works (and what changed this cycle)

Every year Nasdaq looks at its 100 largest non-financial listings and reshuffles membership to reflect company size, liquidity and other rules. The exercise reweights the index to match today’s market and triggers buying and selling by funds that mirror the Nasdaq 100.

For this rebalance Nasdaq announced that six companies will be removed and three will be added, with the changes taking effect on the usual settlement date for the index reshuffle. Nasdaq’s methodology focuses on market capitalization adjusted for free float (the shares actually available to public investors) and also tests for sufficient trading volume so members can be traded by big funds without straining markets. Nasdaq also applies sector and listing rules that can tip the scale when a firm’s float is unusually small or when a company drops below size thresholds.

Note: I don’t have the full company-by-company list from the official press release in front of me here. Nasdaq’s statement contains the exact names and the effective date; that list is what index funds and trading desks will use to execute their rebalance plans.

Why MicroStrategy (MSTR) kept its spot: market cap, float and Bitcoin holdings

MicroStrategy’s story is unusual. On paper it’s a software and services company, but its market price today largely reflects two things: the firm’s equity market value and the company’s public stash of Bitcoin. That combination pushes MicroStrategy into the band of large Nasdaq names despite its operating business being much smaller than peers.

Two technical features helped MSTR survive the cut.

First, market capitalization adjusted for free float. Nasdaq doesn’t count shares that insiders, strategic holders or other locked-up owners are unlikely to trade. MicroStrategy’s free float is enough that the company’s adjusted market cap remained high enough to meet the index threshold. In plain terms: enough shares are actually out there for investors to buy and sell without the stock looking tiny on the index scale.

Second, the Bitcoin position. MicroStrategy has said it holds a very large amount of Bitcoin on its balance sheet. That asset contributes to investor perception of the firm’s value and has helped buoy its share price through recent crypto cycles. When Bitcoin moves higher, MicroStrategy’s equity can get a lift; when Bitcoin sells off, the stock tends to fall. For the purposes of index inclusion, that link matters because it supports the market value side of the equation.

Put together, the adjusted market cap and an adequately tradable float were enough to keep MicroStrategy inside the Nasdaq 100 this cycle, even as other firms near the cutoff were shuffled.

What the rebalance means for stocks, ETFs and Bitcoin-linked exposure

Index changes create predictable flows. When a stock is added, funds that track the Nasdaq 100 buy shares; when a stock is deleted, those funds sell. Because this rebalance cut six and added three, the aggregate flows will be uneven and concentrated. The firms removed will face selling pressure from passive funds, and the three added will enjoy a bid from those same funds around the effective date.

MicroStrategy avoiding removal means it sidesteps that passive outflow. That matters for two groups: holders of the company’s shares who don’t want forced selling, and ETF managers who balance execution risk against index mandates. For crypto-focused investors, the result also matters because MicroStrategy acts as a levered indirect play on Bitcoin; its inclusion keeps a conduit between index-tracking capital and crypto exposure intact.

Expect short-term volatility around the rebalance window as index funds and large managers trade to match the new list. Stocks removed often underperform briefly because of forced selling. Conversely, additions can get a short-term pop. Over a medium-term horizon, fundamentals and crypto moves will again take control — but the rebalance can compress or amplify those moves in the weeks around implementation.

Bigger picture: ETF activity, corporate Bitcoin strategies and regulation

Two wider trends make this story stickier than past rebalances. One is the flood of product-level crypto adoption: spot Bitcoin ETFs and growing institutional demand mean more money flows into vehicles directly tied to Bitcoin. That can raise correlations between Bitcoin and visible corporate Bitcoin plays like MicroStrategy.

Second, a growing number of companies are putting crypto on their balance sheets or using it in treasury management. That trend makes index committees and investors more aware that a company’s stock can carry outsized exposure to crypto price swings — a factor that may influence future inclusion rules or how index-weighted funds manage concentration limits.

Finally, regulatory moves that alter the ease of crypto investment — for ETFs, custodial rules, or corporate accounting — will change how index managers view crypto-exposed equities. If regulators tighten disclosure or accounting for crypto holdings, that could change free-float calculations or the attractiveness of including such firms in blue-chip indexes.

What to watch next for MicroStrategy, Bitcoin and the Nasdaq 100

If you follow MicroStrategy or the intersection of crypto and traditional markets, focus on a few clear signals before the next rebalance:

• Changes to MicroStrategy’s disclosed Bitcoin holdings and any equity moves (share issuance or buybacks). Big changes in either alter adjusted market cap and float almost immediately.
• Liquidity and volume trends in MSTR shares. If tradability drops, index committees can reconsider classifications that depend on free float and volume.
• Regulatory announcements about crypto accounting, ETF rules or corporate treasury treatment. Those can change how markets price Bitcoin on corporate balance sheets.

In short: MicroStrategy’s place in the Nasdaq 100 this rebalance keeps an established bridge between the index world and crypto intact. That link brings extra volatility and attention, and for investors it means watching both equity-market signals and Bitcoin moves — because both drive the stock’s next big swing.

Sources

• nasdaq.com
• coindesk.com
• coindesk.com
• coindesk.com
• coindesk.com
• coindesk.com