Michael Saylor, Chairman of Strategy (MSTR), confirmed the company is in active talks with MSCI as the index provider considers removing firms whose primary business model is buying cryptocurrencies.
A final decision is expected by January 15.
🔎 Why It Matters
MSCI is reviewing whether crypto-heavy companies resemble investment funds, which are ineligible for its major indices.
Strategy is included in the MSCI USA and MSCI World indices — crucial for attracting passive ETF inflows.
- 📉 Strategy shares: down 37% YTD
- 📉 Bitcoin: down 0.6% YTD
- 🏦 Potential outflows: up to $8.8 billion if other index providers follow (JPMorgan estimate)
Saylor, however, downplayed the risk:
“It won’t make any difference, in my opinion.”
📉 Bitcoin Decline Intensifies Pressure
Bitcoin’s sharp November drop — its worst since mid-2021 — hit Strategy hard:
- 🔻 Full-year forecast revised to up to $5.5B loss
- (vs. +$24B profit outlook just one month ago)
The company’s highly leveraged model magnifies BTC swings:
“If Bitcoin falls 30–40%, the equity will fall more,” Saylor said.
Strategy is currently 1.11x leveraged and Saylor claims it could withstand a 95% Bitcoin crash.
🧩 Broader Market Implications
MSCI is proposing exclusions for companies whose digital assets exceed 50% of total assets, a move that could impact a growing number of corporate crypto-treasuries inspired by Strategy’s model.