Strategy engages MSCI over potential index removal and investor impact

The index provider is expected to decide on January 15, and a removal from MSCI USA and MSCI World could trigger sizeable passive outflows, according to a recent JPMorgan analysis.

Saylor confirmed the company is “engaging in that process” with MSCI and questioned the assumptions behind headline outflow figures. JPMorgan has estimated that excluding Strategy could prompt billions of dollars in selling by index‑tracking funds, with the final tally depending on whether other providers mirror MSCI’s stance. Passive vehicles currently hold a meaningful slice of Strategy’s roughly $59 billion market value through products tied to the two benchmarks.

A change in index status would come amid sharp swings in crypto‑exposed equities. Bitcoin set a record above $120,000 in October before retreating on a mix of macro uncertainty and risk reduction across technology shares. Strategy’s stock has fallen more than 37% year to date, a drawdown Saylor characterized as an amplified function of bitcoin’s path. “The equity is going to be volatile because the company is built on amplified bitcoin. If bitcoin falls 30% or 40%, the equity will fall more,” he said on the sidelines of a Binance event in Dubai.

Strategy has repositioned itself over multiple cycles into a digital‑asset treasury vehicle, accumulating bitcoin and issuing notes tied to its holdings. The approach has attracted a wider set of copycats among public companies who use a similar balance‑sheet model to gain exposure. Recent weakness has renewed debate over whether firms could face pressure to sell into declines, potentially adding to volatility if lenders or index rules force de‑risking.

For now, the company is focusing on the index dialogue. Saylor said Strategy remains engaged with MSCI ahead of the January 15 decision and continues to manage the balance sheet for long‑term bitcoin exposure, while investors weigh the implications of any index reclassification for liquidity and funding costs.

As GNcrypto wrote previously, on December 1, 2025 Strategy set a $1.4 billion cash reserve—seeded with recent Class A stock sales—to cover at least 21 months of dividends and reduce the odds of selling bitcoin into weakness. CEO Phong Le said any coin sales would be a last resort if mNAV fell below 1.0 and cash were needed for payouts. The company also disclosed a 130 BTC purchase (~$11.7 million) and cut full‑year scenarios to a bitcoin range of $85,000–$110,000, implying outcomes from a multi‑billion loss to a multi‑billion profit under fair‑value accounting.