JPMorgan Chase: Strategy Stock Faces Potential Outflow of Billions If Delisted From Index

BlockBeats News, November 21st, JPMorgan stated in a report on Thursday that if the global index provider MSCI were to exclude Bitcoin "treasury giant" MicroStrategy (MSTR) from its stock indexes, the related outflow of funds could be as high as $2.8 billion; if other exchanges and index compilers were to follow suit, the total outflow could reach $11.6 billion.

The analysis pointed out that the recent drop in MSTR's stock price—combined with this year's overall weak performance—is more due to market concerns about its potential removal from MSCI, as well as from indexes like the Nasdaq 100 and Russell 1000, rather than because of Bitcoin's own price decline.

"It is precisely because of the inclusion in these indexes that Bitcoin's exposure has indirectly penetrated into retail and institutional investors' portfolios," the analyst wrote. "However, with MSCI now considering to remove MicroStrategy and other companies primarily holding digital assets from stock indexes, this previous indirect exposure may see a reversal."

MSCI is evaluating a proposal to exclude companies whose main business is holding Bitcoin or other crypto assets, and where such assets account for more than 50% of their balance sheet.
MSCI stated last month that this "consultation" will continue until the end of this year, with a final decision to be made by January 15th.