Strategy Faces Potential MSCI Index Removal and Market Impact

Strategy Inc. is in talks with MSCI over potential removal from major indices, potentially impacting up to $8.8 billion in passive investments by January 15, 2026.

The possible delisting raises concerns about Bitcoin’s market stability amidst declining cryptocurrency values, impacting Strategy’s stock and potentially triggering extensive asset sales across the crypto sector.

Strategy’s Bitcoin Holdings Face MSCI Delisting Challenge

Michael Saylor, Strategy’s Executive Chairman, confirmed their involvement in these processes but noted the unpredictability regarding the estimated outflows cited by JP Morgan. Saylor highlighted Bitcoin’s dramatic decline from a $120,000 peak, amplified by economic uncertainties including an AI bubble, which adds pressure on risk assets.

Market reactions have varied. While JPMorgan warns of substantial passive outflows that could affect Strategy’s valuation, others view the delisting anticipation as creating a short-selling focus, possibly presenting a contrarian investment opportunity. TD Cowen has criticized MSCI’s move as “misguided,” defending Strategy’s unique position in leveraging Bitcoin as capital.

“The company is involved in the relevant processes” but is uncertain about the JP Morgan-predicted capital outflows and emphasized that Strategy is fundamentally a software company using Bitcoin as productive capital.” — Michael Saylor, Executive Chairman, Strategy Inc.

Bitcoin Market Volatility Linked to Index Decisions

Did you know? {{Historical index exclusions have led to significant liquidity disruptions and sharp stock sell-offs, setting a potentially unparalleled precedent with Strategy’s Bitcoin exposure if delisted.}}

Bitcoin (BTC), priced at $92,881.71 with a market cap of $1.85 trillion, dominates at 59.02%. BTC shows a 7.17% rise over 24 hours but has lost 13.84% in the last month, per CoinMarketCap. The 24-hour trading volume is $85.90 billion, marking a significant 20.14% increase, reflecting robust activity in light of current discussions.

Coincu research indicates that the outcome of MSCI’s delisting decision could reshape perceptions around corporate digital asset holdings. By comparing past trends in index-connected sell-offs and their impacts, experts anticipate fluctuations in both stock valuations and Bitcoin’s perceived market stability, if Strategy adjusts its holdings significantly.