Key Takeaways
- Coinbase and MicroStrategy may be considered “financial companies” and may not qualify for the Nasdaq-100.
- The Nasdaq-100 is comprised of the top non-financial companies in the U.S. and commands a market cap of over $26 trillion.
- The Nasdaq-100 index update is due to be announced on Dec. 13 and finalized on Dec. 20.
Bitcoin (BTC) investment firm MicroStrategy and leading U.S. crypto exchange Coinbase are currently in the running to see their stocks listed on the coveted $26 trillion Nasdaq-100 index, but there may be some roadblocks getting in the way.
MicroStrategy
The Nasdaq-100 index is comprised of the largest Nasdaq-listed “non-financial” companies. This means that a company can’t be classified as a financial industry entity to be eligible.
This could pose a problem for Bitcoin-maximalist firm MicroStrategy (MSTR).
If Nasdaq considers Bitcoin (BTC) a financial instrument, it could hinder MSTR’s listing.
Conversely, some analysts believe that MSTR’s inclusion is almost guaranteed, thanks to its incredible performance this year and its future prospects.
MicroStrategy has effectively served as a proxy for investors looking to get into BTC without needing to engage with a crypto exchange, set up their own wallets, and deal with any of the associated hassle and risks of owning and holding crypto themselves.
With a market cap of $89 billion, MSTR ranks high amongst Nasdaq-listed top performers, and this is largely thanks to the overwhelmingly bullish year that BTC has had.
Ultimately, this propelled MicroStrategy’s gigantic 402,100 BTC stash to a value of over $38 billion.
Coinbase Considered
Leading U.S. crypto exchange Coinbase is also in the runnings, with a solid market cap of $75.71 billion.
Interestingly, the same logic applies, as Coinbase could be categorized as a financial company by Nasdaq.
Coinbase would argue that it is neither a finance nor a tech company and identifies itself as a crypto company. However, this may all come down to regulations.
Typically, a financial company is one that provides loans or sells securities. Non-financial companies typically hold or provide tangible assets or products.
At present, Coinbase—and many other crypto industry entities—remain locked in legal battles with the U.S. Securities and Exchange Commission (SEC), which is adamant that many cryptocurrencies qualify as securities, which Coinbase and others unlawfully sold to investors.
It is highly likely that until these precedent-setting legal battles are finalized, the Nasdaq, which is accountable to the same laws, will be unable to bring Coinbase into the Nasdaq-100 until it is clear what does and doesn’t constitute a security offering in crypto.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
