MSTR Faces Potential MSCI Index Removal, Could Trigger Billions in Outflows

MicroStrategy (MSTR), the largest public holder of bitcoin, is in discussions with index provider MSCI over a possible removal from major equity benchmarks—a move that could have significant financial implications.

According to Reuters, a decision is expected by Jan. 15. Analysts at JPMorgan estimate that if MSCI removes MicroStrategy and other index providers follow suit, the stock could see outflows of up to $8.8 billion. The company’s inclusion in indices such as MSCI USA and MSCI World makes it a component of numerous passive investment products.

“We’re engaging in that process,” CEO Michael Saylor told Reuters regarding MSCI, adding that he “was not sure” about the accuracy of JPMorgan’s outflow estimates.

MicroStrategy, which holds 650,000 BTC on its balance sheet, has faced scrutiny after bitcoin prices dropped from an all-time high above $120,000 to as low as $82,000. While bitcoin has partially recovered to around $93,000—still about 26% below its record—critics remain concerned about the sustainability of the company’s debt and equity issuance to accumulate more BTC. MicroStrategy shares have declined 37% year-to-date.