Strategy Faces $8.8B Outflow Threat as MSCI Considers Index Removal

Strategy faces possible MSCI index removal, risking up to $8.8B in outflows and increased market volatility. The decision could reshape perceptions of corporate digital asset holdings and impact both stock and Bitcoin markets.

Strategy, the largest public holder of Bitcoin, is in talks with MSCI over a proposed rule that could see it removed from major equity indexes by January 15, 2026. This move could trigger up to $8.8 billion in passive fund outflows, as index-tracking funds would be forced to sell their holdings. The proposal, introduced by MSCI, would reclassify companies with over 50% of assets in digital assets as "digital asset funds," making them ineligible for key benchmarks. Strategy's stock has already fallen over 37% this year amid concerns about its debt and equity issuance to buy more Bitcoin, and the volatility in Bitcoin's price has intensified scrutiny. While JPMorgan estimates significant outflows if the exclusion proceeds, Strategy's leadership disputes the accuracy of these figures. The outcome of MSCI's decision could set a precedent for corporate digital asset holdings and impact both Strategy's valuation and broader market stability.