The strategy, under the leadership of Michael Saylor, faces one of its most serious challenges to date, as its stock risks being excluded from major stock indices despite its contribution by extending its bet on the Bitcoin currency (Bitcoin-BTC) to traditional investment portfolios.
In a note reported by Bloomberg this week, JPMorgan analysts indicated that Strategy stock could be excluded from the list of MSCI and Nasdaq 100 indices in the United States. Analysts estimate that simply removing the company’s shares from the MSCI index list could cause it to lose investments amounting to $2.8 billion, and that could increase if followed by its removal from the lists of other index providers. Investments from passive funds linked to the company represent approximately $9 billion. A final decision on its removal is expected by January 15.
Potential index exit threatens Strategy’s adoption of Bitcoin.
For Strategy, which has built its brand on transforming investment exposure to Bitcoin into a correlation with an exchange-traded stock, the impact of index exclusion will not be limited to trading volumes alone, but will also affect the institutional credibility that previously made it an investment destination for fund managers seeking access to the world’s leading digital currency under regulatory oversight.
According to Bloomberg, Michael Saylor’s Strategy Inc is at risk of being removed from major benchmarks such as the MSCI USA and the Nasdaq 100. Passive vehicles linked to the company represent nearly $9 billion in market exposure, and a decision is expected by January 15.MSCI is…
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The strategy followed a simple model to increase the value of its shares, with the company selling its shares and using the proceeds from the sale to accumulate Bitcoin balances, and exploiting successive waves of rising currency prices to justify issuing additional shares and resuming currency accumulation activities. At the height of the current market cycle, the company’s market capitalization was well above the actual value of its Bitcoin holdings. However, this price premium has declined significantly, such that the company’s market value is now only slightly higher than the value of its foreign exchange reserves, suggesting the disappearance of investor confidence in its future performance.
JPMorgan analysts led by Nikolaos Panigirtzoglou explained: “Even if active fund managers are not obliged to follow adjustments to index listings, exclusion from major indexes would certainly be viewed negatively by market participants,” indicating risks related to liquidity, funding costs and the attractiveness of the stock.
MSCI index proposal targeting companies whose value is dominated by digital assets puts strategy at risk
The rules for indicators seem to continue to change; In an update to the October 10 public consultation, index providers MSCI said that some market participants consider companies with large reserves of digital assets to be more like mutual fund models and not eligible for inclusion in stock indexes. MSCI Index Bloomberg Agency said the company does not “speculate on future changes that the indices may witness.”
This pressure comes after a painful drop in the price of Bitcoin and Strategy Company shares. After the stock price hit an all-time high last November, its value plummeted by more than 60%, erasing its gains that had previously tempted traders and momentum-seeking investors tied to the crypto sector.
Despite this decline, the stock price still maintains gains of more than 1,300% since Saylor announced its first Bitcoin purchases in August 2020, gains that have outperformed all major stock indexes since then.
The decline in Bitcoin’s price reveals cracks in the ring of previous investment temptations that Strategy stocks benefited from.
The price of Bitcoin has fallen more than 30% from its all-time highs in October, while crypto markets have lost more than $1 trillion in market value, and Strategy’s adjusted asset value (mNAV) index – which measures the ratio of a company’s market capitalization to its Bitcoin holdings – has fallen to just above 1.1, indicating that the stock price is currently up significantly. The value of the company’s holdings is only very small, and the loop that fed into each other – based on buying more Bitcoin balances to increase the stock price, then issuing more shares – is no longer working the way it should have worked.
However, Saylor hasn’t slowed the pace of his approach. Earlier this week, Strategy purchased 8,178 BTC for $835.6 million at an average price of $102,171 per coin, including fees and expenses. This deal brings the company’s total stake to 649,870 BTC as of November 16, 2025, which were purchased for a total of $48.37 billion and at a total average price of $74,433.
Currently, investors are waiting to see if financial markets and index providers will continue to support this strategy as the market’s upcycle takes a turn.
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