Bitcoin-Heavy MicroStrategy Could Be Removed From MSCI Indices, Analysts Warn of Up to $9B Hit in Stock Demand

Reuters reports that MSCI is weighing the removal of MicroStrategy (MSTR.O) from its global benchmarks, a development that would affect a company with sizable Bitcoin exposure. Analysts warn the shift could erase as much as $9 billion in stock demand and dampen sentiment for crypto-linked equities.

MSCI index exclusion discussions center on an October plan to target firms with digital asset holdings constituting 50% or more of total assets, arguing such entities resemble funds and fall outside the global benchmark indices. Industry players counter that these are operational tech firms driving innovation and view the proposal as discriminatory against the crypto sector.

Public consultation continues; a January 15 decision could set a precedent. Analysts warn that excluding Digital Asset Treasury (DAT) companies may prompt other index providers to adopt similar steps, reshaping institutional exposure to crypto holdings and overall passive exposure.