Bitcoin Giant Strategy Could Shed Billions If Removed From Stock Indices: JPMorgan

Source: CryptoNewsNet Original Title: Bitcoin Giant Strategy Could Shed Billions If Removed From Stock Indices: JPMorgan Original Link: https://cryptonews.net/news/finance/32021101/ Outflows from Strategy (MSTR) could total $2.8 billion if global finance company MSCI excludes the Bitcoin treasury giant from its equity indices, and reach $11.6 billion if other exchanges follow suit, according to an investment banking analysis.

A recent drop in MSTR’s share price has stemmed more from concerns about the company’s potential removal from MSCI lists, where it is currently included, as well as on the Nasdaq 100, Russell 1000, and other indices, than Bitcoin’s price slump.

“This index inclusion has enabled Bitcoin exposure to indirectly encroach into both retail and institutional investor portfolios,” analysts wrote. “However, with MSCI now considering removing MicroStrategy and other digital asset treasury companies from its equity indices, this previous indirect encroachment could go into reverse.”

MSCI is currently weighing a proposal to exclude companies whose primary business is accumulating Bitcoin or other cryptocurrencies, with those assets accounting for at least 50% of their holdings. The organization said that the “consultation” extends through the end of the year, with a decision due by January 15.

Strategy, formerly MicroStrategy, has faced increasing headwinds as Bitcoin’s price has fallen sharply. The company’s $51 billion market value reflects a 0.90 premium against its roughly $56 billion Bitcoin stockpile. The premium, often referred to as mNAV (multiple-to-net asset value), is down from 2.7 a year ago.

Last week, the company’s Executive Chair, Michael Saylor, pushed back on rumors that the firm was liquidating parts of its Bitcoin stockpile.

Strategy was down 5.1% to $177.13. Its share price has plunged more than 40% over the past month as Bitcoin’s price has fallen.

Analysts noted that index-focused funds own a substantial portion of Strategy shares. “While active managers are not obligated to follow index changes, exclusion from major indices would certainly be viewed negatively by market participants, raising concerns about the cost and the ability of MicroStrategy to raise equity and debt in the future,” they wrote. “With less index-related trading, the company may also see lower trading volumes and liquidity, making it even less attractive to large investors.”

Bitcoin has shed 3.4% to around $87,100, and more than 22% over the past month. The largest crypto has also dropped into the red since the start of 2025, after hitting a record high at the beginning of October.

Analysts say the drop is due to macroeconomic angst, including concerns about jobs data and the decreasing likelihood of an interest rate cut that would bolster digital asset markets’ liquidity needs.