Bitcoin News Update: MSTR's Business Role Under Scrutiny as MSCI Considers $8.8B Removal

MicroStrategy (MSTR) could be subject to a sell-off of up to $8.8 billion if

decides to remove it from its stock indices because of its substantial assets, JPMorgan analysts report. The index provider is currently seeking feedback until December 31 on whether to exclude firms whose digital assets make up at least half of their total assets from its global indices. , which has about $9 billion in passive investments through ETFs and mutual funds linked to major indices, may experience $2.8 billion in outflows from MSCI alone, with the total potentially reaching $8.8 billion if other index providers follow . The outcome, anticipated by January 15, 2026, has already played a role in MSTR’s 67% drop from its November 2024 high and a 56% decrease over the past six months .

JPMorgan believes that exclusion would negatively impact MSTR’s liquidity, market value, and fundraising ability. "Active managers are not required to mirror index changes, but the reputational hit could raise doubts about the cost and practicality of future equity or debt offerings," analysts commented

. The company’s market capitalization compared to its bitcoin reserves has reached its lowest point since the pandemic, and a negative decision could make its valuation almost entirely dependent on its crypto holdings .

Executive Chairman Michael Saylor has consistently defended MSTR’s position as an operating business with a $500 million software division, dismissing claims that it acts as a passive bitcoin investment vehicle. "Strategy is not a fund, not a trust, and not a holding company," he wrote on X, stressing the company’s digital lending services and operational model

. Saylor also pointed to a recent $835 million bitcoin acquisition, demonstrating his ongoing faith in the asset despite price swings .

MSCI’s proposal has brought more attention to firms with large digital-asset portfolios. MSTR’s presence in the Nasdaq 100, MSCI USA, and MSCI World indices has given both retail and institutional investors indirect exposure to bitcoin through index-based products

. Experts caution that removal could disrupt this exposure, possibly speeding up outflows as investors adjust their holdings .

The consultation period ends on December 31, with a final verdict expected January 15. MSTR shares dropped 5.7% in pre-market trading Friday as uncertainty increased

. Saylor’s recent public statements and MSTR’s aggressive bitcoin purchases indicate the company is bracing for regulatory and market challenges, but the final impact remains unclear as institutional investors assess the risks of concentrated digital-asset exposure.