Strategy faces potential removal from major benchmarks amid asset scrutiny

Strategy is facing potential removal from major equity benchmarks, including the MSCI USA and the Nasdaq 100, as MSCI reviews policies targeting firms whose digital asset holdings exceed half of their total assets. JPMorgan analysts warn that if MSCI excludes the stock, as much as $2.8 billion could exit the company, with potentially billions more leaving through other index-linked funds. The firm's Bitcoin-heavy balance sheet, which previously drove a large valuation premium, now links its performance more closely to crypto volatility than traditional equity behavior. This scrutiny is also impacting Strategy's funding, evidenced by falling preferred share prices and rising yields, as investors question the viability of a model dependent on market momentum and Bitcoin appreciation. MSCI is expected to announce its decision soon following market consultations.

(Source：Crypto Briefing)