Strategy (MSTR) Shares Face Possible MSCI Index Removal, Threatening Billions in Outflows: Reuters

Strategy (MSTR), the largest public holder of bitcoin, is currently in discussions with index provider MSCI concerning a possible removal from major equity benchmarks, with a decision expected by January 15th. This potential exclusion carries significant financial risk; JPMorgan analysts estimate that if other index providers follow MSCI's lead, outflows could reach as high as $8.8 billion because MSTR is included in indices like MSCI USA and MSCI World, making it part of numerous passive investment products. Strategy CEO Michael Saylor confirmed they are engaging in the process but expressed uncertainty about the accuracy of the outflow estimates. The news comes as Strategy shares have dropped 37% this year amid criticism over the sustainability of its debt and equity issuance strategy used to accumulate its 650,000 BTC, following a significant drop in the cryptocurrency's price.

(Source：CoinDesk)