Bitcoin News Update: Index Firms' Reclassification May Trigger $9 Billion Outflow from MicroStrategy
- MicroStrategy risks $9B passive fund outflows if index providers reclassify it as a digital asset vehicle, excluding it from major benchmarks like MSCI USA and Nasdaq 100. - The company holds 80%+ of its value in Bitcoin ($54.4B), creating leverage risks as crypto prices fall and its stock trades below net asset value. - CEO Saylor claims "indestructibility" despite 67% stock price drop and $8.1B debt, while analysts debate whether MicroStrategy should be categorized as an operating firm or crypto fund.
MicroStrategy Confronts Major Challenge as Index Providers Consider
MicroStrategy Inc. (MSTR), once a business intelligence company and now a major force in Bitcoin investment, is preparing for a critical juncture as top index providers weigh whether to categorize it as a digital asset investment entity. If removed from prominent equity indexes, the company could see passive funds withdraw as much as $9 billion,
MSCI Inc., a major authority on global index standards, is conducting a consultation through January 15, 2026, on new rules that would exclude companies whose digital assets make up more than half of their total assets. MicroStrategy currently owns 649,870 Bitcoin—worth $54.4 billion as of mid-November—accounting for more than 80% of its total enterprise value. Should the reclassification occur, MicroStrategy would be removed from the
This possible reclassification highlights fundamental weaknesses in MicroStrategy’s business approach. While CEO Michael Saylor claims the company is “indestructible” and can survive an 80–90% drop in Bitcoin’s value, its financial data suggests otherwise. The premium of its net asset value (NAV) over its share price has nearly vanished, eliminating the arbitrage opportunity that previously fueled its aggressive Bitcoin buying. With $8.1 billion in liabilities and
The recent 30% drop in Bitcoin’s value has already put pressure on MicroStrategy’s finances. Its stock, now 67% below its July peak, is trading under its NAV, and technical signals point to continued weakness. The Relative Strength Index (RSI) for both Bitcoin and
Experts remain split on MicroStrategy’s outlook.
The debate over index classification also brings up larger issues about how public markets should value companies with large Bitcoin reserves. MSCI’s proposed guidelines seek to distinguish between operating businesses and investment vehicles, but MicroStrategy’s dual role as both a software firm and a crypto fund challenges traditional definitions.
With the January 15 deadline drawing near, MicroStrategy faces a convergence of challenges: unstable Bitcoin prices, tightening credit conditions, and uncertainty over its place in major indexes. Saylor’s optimism about Bitcoin’s long-term future stands in contrast to the immediate pressures—his leveraged “sell stock, buy Bitcoin”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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