MSCI Considers Removing Strategy from Major Indexes Amid Crypto Debate

Strategy is in talks with MSCI regarding its inclusion in major benchmarks. This follows MSCI's review of companies with significant crypto reserves, questioning if they qualify as operating companies or resemble investment vehicles.

MSCI may exclude firms with crypto reserves exceeding half of their total assets by February 2026.
JPMorgan warns such exclusion could lead to passive funds selling up to $8.8 billion in shares.
Michael Saylor, Strategy’s executive chairman, is unsure about the accuracy of these outflow estimates.

Impact on Strategy

Strategy’s stock has dropped over 37% this year, partly due to BTC price fluctuations.
The firm holds around 650,000 BTC units, valued at over $60 billion, but its market cap is below $50 billion.
Speculation arises about potential forced BTC sales, with the company preparing a $1.44 billion cash buffer.
CEO Phong Le mentioned possible reserve sales under extreme conditions.
Despite volatility, Strategy’s stock rose nearly 6% recently as BTC briefly reached $93,000.