Bitcoin News Update: Removal from Index May Undermine MSTR’s Bitcoin-Based Strategy

Leading institutions could see $5.4 billion exit

as considers removal

MicroStrategy (MSTR), a public holding company, could face multi-billion dollar outflows if major index providers drop it from their equity indices, according to . The bank cautioned that MSCI’s suggested policy—excluding firms with more than half their assets in digital currencies—might lead to as much as $8.8 billion in forced sales if enacted, with further consequences if other index firms follow. , MSCI USA, and MSCI World indices puts about $9 billion in passive investments at risk of automatic selling if the rule is enforced.

This alert has brought renewed attention to Michael Saylor’s

of using Bitcoin as a key corporate asset. , defended MSTR’s role as an operating business with $500 million in software revenue, saying it is not comparable to a fund or trust. “We are a structured finance company backed by Bitcoin,” he said, this year as proof of the company’s active operations. Still, that MSTR’s value is now closely tied to its Bitcoin reserves, with its market-implied net asset value (mNAV) ratio near 1.1, suggesting the stock price is only slightly above the worth of its crypto assets.

Concerns over possible delisting have already shaken MSTR’s share price, which has

and fell 5.7% in pre-market trading on Friday. said that being removed from MSCI indices would not only prompt immediate selling but also damage institutional trust and liquidity, making it harder for the company to raise funds. MSTR’s preferred shares, which , highlight investor doubts about its ability to finance Bitcoin purchases and pay dollar-based dividends.

The crypto sector has criticized JPMorgan’s findings, with people like real estate mogul Grant Cardone and Bitcoin supporter Max Keiser calling for retail investors to boycott the bank.

, while Keiser encouraged his audience to “Crash and buy Strategy and BTC.” Some critics claim the bank is betting against MSTR, though JPMorgan has not verified these claims. about JPMorgan’s past connections to Jeffrey Epstein.

MSCI is expected to make a final decision on the index rule by January 15, 2026

. If the exclusion is approved, it would represent a major change for MSTR, which has benefited from index inclusion to boost its Bitcoin exposure via passive investment flows. Saylor remains steadfast, , but analysts caution that the company’s financial strategies may be challenged if it is forced out of key indices.