The coming week presents a significant challenge for Strategy Inc. While the company has secured its position in the Nasdaq 100, this partial victory is overshadowed by a looming review from index provider MSCI. The core issue is whether major index providers will continue to classify Strategy as a conventional technology stock or begin to view it primarily as a publicly-traded Bitcoin reserve.
Conflicting Signals from Major Indices
On one hand, Strategy Inc. has received confirmation from Nasdaq that it will remain a constituent of the Nasdaq 100 index following its annual rebalancing. This status, effective at the market open on Monday, December 22, 2025, ensures continued demand from the multitude of ETFs and funds that track this benchmark.
However, this stability is countered by substantial uncertainty stemming from MSCI. The global index compiler is currently conducting a review and is reportedly considering reclassifying Strategy Inc. as a “Digital Asset Treasury” (DAT). This potential shift stems from the fact that more than half of the company’s balance sheet is now held in digital assets, a fundamental departure from typical software or platform businesses focused on operational revenue.
The implications of an MSCI reclassification are severe. Analysts estimate it could trigger forced selling in the range of $2.8 to $8.8 billion. The mechanism is straightforward: if Strategy is excluded from standard equity indices, passive funds and institutional mandates tied to those benchmarks would be compelled to divest their holdings. This situation highlights the clash between the company’s aggressive Bitcoin-focused treasury strategy and the more conservative classification frameworks of major index houses.
Should investors sell immediately? Or is it worth buying Strategy?
Market Performance and Bitcoin Correlation
The stock’s recent price action reflects this underlying tension. Shares closed at 140.95 euros on Friday, marking a notable decline for the month. The technical picture remains precarious.
Key observations from the chart include:
* Established Downtrend: Since August 2025, the share price has been locked in a volatile downward trajectory, characterized by sharp and sometimes severe swings.
* Direct Bitcoin Link: Intraday volatility is closely tied to the price of Bitcoin, which recently tested the $87,600 level. Fluctuations in the cryptocurrency are immediately reflected in Strategy’s stock price.
* Persistent Strategy: Despite the market pressure, management continues to execute its plan, having recently purchased an additional $1 billion worth of Bitcoin.
Technically, the stock trades below its key moving averages. Meanwhile, a Relative Strength Index (RSI) reading above 80 indicates an overbought or overextended condition following recent counter-trend moves—a fragile combination in an already nervous market environment.
Outlook: A Week of Heightened Volatility
The central conflict for Strategy Inc. is now clearly defined: its corporate strategy versus traditional index inclusion rules. While its place in the Nasdaq 100 provides a base level of consistent demand, the short-term narrative is dominated by the uncertainty surrounding the MSCI decision. The coming days will reveal the scale of potential selling from index-tied investors relative to the supportive flows from Nasdaq-tracked funds. All the ingredients are present for a week of exceptionally volatile trading.
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