JPMorgan says Strategy could face billions in outflows if MSCI and other major indices remove it

JPMorgan analysts, led by Nikolaos Panigirtzoglou, suggest that Michael Saylor’s Strategy (formerly MicroStrategy) faces significant downside risk if it is removed from major equity indices such as the Nasdaq-100 and MSCI indices. The analysts estimate that about $9 billion of Strategy's $50 billion market value is held by passive funds tracking these indices. If excluded from MSCI indices, outflows could reach $2.8 billion, potentially rising to $8.8 billion if other index providers follow suit. Index inclusion has allowed retail and institutional investors passive exposure to bitcoin via Strategy's stock, and removal would reverse this flow. Furthermore, delisting would signal a negative outlook, potentially hindering future capital raising and reducing liquidity. MSCI is currently consulting on a proposal to exclude companies whose primary activity is digital asset treasury management if those holdings exceed 50% of total assets, with a pivotal decision expected on January 15, 2026.

(Source：The Block)