JPMorgan (JPM) Warns MSCI Decision Could Force Strategy (MSTR) Out of Top Equity Indices

JPMorgan analysts suggest that the recent steep underperformance of Strategy (MSTR) stock is primarily due to the looming risk of being removed from major equity indices by MSCI, rather than just crypto-market dynamics. Strategy currently resides in benchmarks like the Nasdaq 100 and MSCI World, meaning about $9 billion of its $59 billion market cap is held in passive vehicles tracking these indices. If MSCI ejects Strategy following its January 15 ruling, the bank estimates roughly $2.8 billion in passive outflows, potentially rising to $8.8 billion if other index providers follow suit. Losing major index status would also damage Strategy's reputation, potentially hindering its ability to access equity and debt markets and reducing liquidity.

(Source：CoinDesk)