TD Cowen Sees Strategy ($MSTR) Under Pressure as MSCI Index Review Looms

TD Cowen analysts warn that Strategy ($MSTR) stock could face sustained selling pressure if MSCI removes it from all its indexes in February following a mid-January decision, calling the potential removal "capricious."

Cowen argues that Strategy is an operating company with a $500 million software business, not an investment fund, and its Bitcoin focus should not warrant exclusion, questioning if MSCI harbors a crypto bias. The stakes are high, as JPMorgan warned that exclusion could trigger $2.8 billion in passive outflows, potentially exacerbating the stock's recent 60% decline since last November.

Despite short-term volatility linked to index fears, Cowen maintains a long-term bullish outlook, projecting $MSTR could hold 815,000 BTC by 2027, supporting a $585 price target. Chairman Michael Saylor continues to dismiss index concerns, emphasizing the company's operating business and innovative Bitcoin-backed credit programs, while Cowen notes potential tailwinds like S&P 500 inclusion.

(Source：Bitcoin Magazine)