MicroStrategy Could Face Billions in Outflows From Potential MSCI Index Removal
MicroStrategy (MSTR), the largest publicly traded holder of bitcoin, is in discussions with index provider MSCI over a potential removal from major equity benchmarks—a move that could have major financial consequences.
Reuters reports that a decision is expected by Jan. 15. JPMorgan analysts estimate that if MSCI removes MicroStrategy and other index providers follow, the company could face outflows of up to $8.8 billion. Its inclusion in indices such as MSCI USA and MSCI World makes it a key holding in many passive investment funds.
CEO Michael Saylor told Reuters, “We’re engaging in that process,” noting he was uncertain about the accuracy of JPMorgan’s estimates.
MicroStrategy, which holds 650,000 BTC, has faced scrutiny after bitcoin fell from above $120,000 to $82,000. While prices have partially recovered to roughly $93,000—still 26% below its all-time high—critics question the sustainability of the company’s debt- and equity-fueled bitcoin accumulation strategy. Shares have fallen 37% year-to-date.
