Strategy (formerly Microstrategy) is facing heightened risk of being removed from major MSCI indices, according to a JPMorgan analysis that estimates billions in potential passive outflows. Executive Chairman Michael Saylor pushed back on social media, asserting the company is a long-term operating business with a unique bitcoin-based treasury strategy, not a passive fund or trust.
JPMorgan Flags Index Danger, Estimate $2.8 Billion at Stake
JPMorgan analysts noted that MSCI is reviewing whether to exclude Microstrategy and other digital asset treasury companies from its equity indices. If Microstrategy is removed from MSCI indices, outflows could reach $2.8 billion, and if other index providers follow suit, the total could balloon to $8.8 billion. The bank said the stock’s recent underperformance relative to bitcoin is partly due to rising index eligibility concerns.
Currently, MSTR is included in the Nasdaq 100, MSCI USA, and MSCI World. Roughly $9 billion in benchmark-linked capital tracks indices that contain the stock, meaning forced selling could occur if MSTR is dropped.
Matthew Sigel, head of digital assets research at VanEck, commented on X: “$MSTR – JPM says Microstrategy ‘at risk of exclusion’ from major equity indices as the January MSCI decision approaches.”
Saylor Fires Back: 'We Are Not a Passive Vehicle'
Michael Saylor addressed the MSCI development on X, stating: “Strategy is not a fund, not a trust, and not a holding company. We’re a publicly traded operating company with a $500 million software business and a unique treasury strategy that uses Bitcoin as productive capital.” He highlighted that the firm completed multiple public offerings of digital credit instruments this year with several billion dollars in notional value, designed to expand bitcoin-backed financing for both institutional and retail buyers.
Saylor emphasized operational details, arguing that no passive vehicle could replicate what his team is building. “No passive vehicle or holding company could do what we’re doing,” he said, adding: “Index classification doesn’t define us. Our strategy is long-term, our conviction in bitcoin is unwavering, and our mission remains unchanged: to build the world’s first digital monetary institution on a foundation of sound money and financial innovation.”
Supporters argued that Strategy’s approach broadens market innovation and reinforces bitcoin’s role in modern capital markets, despite the pressure from index reclassification.
What’s Next
MSCI is expected to announce its decision during the regular review period around January 2026. If MSTR is removed, it could set a precedent for other bitcoin-heavy firms such as Mara Holdings (MARA) and Riot Platforms (RIOT). However, Saylor and the management team have made clear they will not alter long-term strategy due to index mechanics; bitcoin purchases and structured finance initiatives will continue.