The Michael Saylor‑driven strategy faces the possibility of removal from major stock indices.
JPMorgan analysts warn that Michael Saylor’s Strategy could be dropped from the MSCI USA and Nasdaq 100 benchmarks. MSCI removal alone may trigger up to $2.8 billion of outflows, with additional pressure if other index providers follow suit. Passive funds linked to the company already represent nearly $9 billion of market exposure. A final inclusion decision is expected by January 15. The potential exclusion jeopardizes the institutional credibility that made Strategy a favored vehicle for regulated Bitcoin exposure. After a 60 % stock decline, the premium over its Bitcoin holdings has vanished, leaving a market‑adjusted net asset value just above 1.1 times its crypto reserve. Nonetheless, shares remain up more than 1,300 % since the 2020 Bitcoin purchases, outpacing major equity indexes. JPMorgan notes that index removal could hurt liquidity, increase funding costs, and reduce investor appeal. MSCI is proposing to exclude any company whose digital‑asset holdings exceed 50 % of total assets, treating such firms more like investment funds than traditional equities. In response, Strategy recently bought 8,178 Bitcoin for $835.6 million, raising its total holdings to 649,870 BTC acquired for $48.37 billion at an average price of $74,433. Investors now watch whether index providers and capital markets will continue to support the model as the crypto cycle evolves.
