Bitcoin hoarding giant Strategy may be removed from the Nasdaq 100 index due to questions about its business model, potentially impacting its share price. Strategy reported a net profit of $2.78 billion, driven by gains on its bitcoin holdings. Nasdaq’s announcement on Friday will determine if Strategy stays in the index.

Concerns have risen over the sustainability of crypto treasury companies like Strategy, whose shares are down 65% from their peak. Strategy’s market value is $52.7 billion, with bitcoin holdings worth over $61 billion. If Nasdaq removes Strategy, it could result in passive fund outflows of approximately $1.6 billion.

Global index provider MSCI is also evaluating the presence of digital asset treasury companies like Strategy in its benchmarks. Some analysts believe Strategy is safe due to its high market value, but there are concerns about its inclusion in the Nasdaq 100 index. Changes to the index are expected to be announced on December 22.

Read more at Yahoo Finance.: Analysts flag risks for Strategy at Nasdaq 100 index reshuffle