MicroStrategy Faces $9 Billion Outflow Risk as Index Providers Eye Bitcoin Holdings
Index providers like MSCI are considering rules that could exclude MicroStrategy from equity indexes, risking up to $9 billion in passive investment outflows.Summary
MicroStrategy (recently renamed Strategy Inc.) faces a significant risk of losing nearly $9 billion in passive investment flows if major index providers adopt new criteria targeting companies holding substantial digital assets. MSCI is consulting on rules that would exclude firms where digital assets exceed 50% of total assets, arguing such companies resemble investment funds rather than operating companies eligible for equity indexes. JPMorgan analysis suggests MSCI exclusion alone could trigger $2.8 billion in passive fund sales, potentially reaching $8.8 billion if other providers follow suit. This threat comes as MicroStrategy's stock (MSTR) has fallen 60% from highs, eroding the valuation premium essential for its strategy of issuing equity to buy Bitcoin. A final decision from MSCI is expected by January 15, 2026, which will set a precedent for how indexes treat public firms using Bitcoin as a reserve asset.
(Source：BeInCrypto)