TLDR
- Strategy Chairman Michael Saylor defended the company’s business model, calling it an operating company with a $500 million software business and Bitcoin treasury strategy, not a passive investment vehicle
- JPMorgan analyst warns Strategy faces potential removal from Nasdaq100, MSCI USA, and MSCI World indices
- About $9 billion of Strategy’s $59 billion market cap is held in passive investments through ETFs and mutual funds tied to major benchmarks
- Potential exclusion could trigger outflows of $2.8 billion from MSCI indices and up to $8.8 billion if other index providers follow
- MSCI’s January 15 decision is considered pivotal for the company’s future capital raising ability and stock liquidity
Strategy stock has drawn attention as questions arise about its classification in major equity indices. The company’s heavy Bitcoin exposure has prompted concerns from analysts about potential removal from key benchmarks.
MicroStrategy Incorporated, MSTR
Chairman Michael Saylor took to X to address these concerns directly. He emphasized that Strategy operates as more than just a Bitcoin investment vehicle.
Saylor described the company as “a publicly traded operating company with a $500 million software business and a unique treasury strategy that uses Bitcoin as productive capital.” He drew a clear line between Strategy and passive funds, trusts, or holding companies.
The chairman pointed to the company’s active financial operations in 2025. Strategy completed five public offerings of digital credit securities totaling over $7.7 billion in notional value.
The company also launched Stretch, a Bitcoin-backed treasury credit instrument. This product provides variable monthly USD yield to investors.
Index Removal Warning
JPMorgan analyst Nikolaos Panigirtzoglou issued a warning about Strategy’s index status. He stated the company faces potential exclusion from the Nasdaq100, MSCI USA, and MSCI World indices.
The analyst’s research shows approximately $9 billion of Strategy’s current $59 billion market capitalization sits in passive investments. These holdings exist through ETFs and mutual funds tied to major benchmarks.
Panigirtzoglou outlined the potential financial impact of exclusion. He estimates outflows of $2.8 billion from MSCI indices alone.
The damage could extend further if other index providers follow MSCI’s lead. Total outflows could reach $8.8 billion in that scenario.
January Decision Looms
The JPMorgan analyst labeled MSCI’s January 15 decision as “pivotal” for Strategy’s future. Exclusion from these indices could create multiple problems for the company.
The analyst suggested removal would hurt Strategy’s ability to raise capital. Trading volumes and liquidity would also face pressure.
Passive fund managers tracking these indices would be forced to sell their Strategy holdings. This mandatory selling could push the stock price lower.
Saylor remained defiant in his response to these concerns. He stated that “index classification doesn’t define us.”
The chairman affirmed the company’s commitment to its Bitcoin strategy. He declared that the company’s “conviction in Bitcoin is unwavering.”
Strategy stock has declined 40.96% year-to-date. The drop mirrors Bitcoin’s recent price weakness.
The company continues purchasing Bitcoin despite market volatility. Management maintains they have sufficient liquidity and flexibility without needing to sell assets.
Analysts note that Strategy’s stock performance remains closely tied to Bitcoin prices. If Bitcoin recovers, the stock could see gains driven by institutional interest.
MSCI’s January 15 decision will determine whether Strategy maintains its place in major equity indices.
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