Core Viewpoint - Strategy, a major player in Bitcoin investment, faces potential removal from the Nasdaq 100 index due to concerns over its business model and share price performance [1][4]. Group 1: Company Overview - Strategy, originally a software company (MicroStrategy), transitioned to Bitcoin investing in 2020 and reached a market capitalization peak of $128 billion earlier this year [2]. - The company reported a net profit of $2.78 billion for the three months ending September 30, a significant turnaround from a loss of $340.2 million a year earlier, primarily due to an accounting change that allowed it to recognize gains on Bitcoin holdings [3]. Group 2: Market Performance and Concerns - Strategy's shares have declined by 65% from their 2024 peak and 36% year-to-date, contrasting with a 3.6% drop in Bitcoin this year [7]. - The company's market value has decreased to $52.7 billion, while its Bitcoin holdings are valued at over $61 billion [7]. Group 3: Nasdaq 100 Index Implications - The Nasdaq 100 index is undergoing an annual reshuffle, which could impact companies like Strategy that are sensitive to market capitalization changes [4][6]. - Analysts have raised questions about whether Strategy should be classified as a holding company or a cryptocurrency company, which could influence its inclusion in the index [4].

Core Viewpoint - Economist Henrik Zeberg warns that Strategy (formerly MicroStrategy) stock may face significant risks due to its heavy exposure to Bitcoin, potentially leading to a major shorting opportunity in the near future [1][2]. Group 1: Company Strategy and Performance - Strategy's executive chairman, Michael Saylor, has been a strong proponent of Bitcoin, asserting that "the only thing better than Bitcoin is more Bitcoin," which has resulted in the stock surging approximately 3,500% over the past five years, significantly outperforming Bitcoin's 905% increase during the same period [3]. - The company currently holds 601,550 BTC at an average purchase price of $66,384, indicating a continued commitment to its Bitcoin strategy despite potential risks [9]. Group 2: Market Sentiment and Short Interest - Short interest in Strategy stock has been rising, with short volume reaching 3.76 million shares on July 18, 2025, out of a total trading volume of 6.74 million, resulting in a short volume ratio of 55.7%, the highest in the past ten trading days [4][5]. - The stock has shown signs of weakness in the short term, closing down over 6% to $423.22 in the last trading session, although it has gained over 40% year-to-date [7].