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In an attempt to point fingers for the cause of poor price performance as of late, a new narrative has emerged. Many within the crypto industry now believe Strategy's MSTR will be dropped from popular stock indexes in the coming months.
What's the Scoop?
- JPMorgan Jests: Analysts for JPMorgan now warn that MSTR is a likely candidate for delisting from Morgan Stanley Capital International (MSCI) index products. They claim MSTR's exclusion from MSCI will perpetuate $2.8B of sell pressure. Should competitive index providers like Russell, Nasdaq, and S&P Global follow, the total could swell by an additional $8.8B.
- Old News: MSCI first announced that it was soliciting feedback on whether companies holding over 50% of their assets as digital assets from its index products should be included in their indexes on October 10, the very same day that crypto's disastrous "10/10" liquidation crisis occurred.
- Investment Company Concerns: According to MSCI, its clients are concerned that digital asset treasury (DAT) companies represent investment funds, which are not currently eligible for index inclusion. The Nasdaq 100 index, of which MSTR is a constituent, has rules similarly prohibiting the inclusion of financial companies.
- Recent Market Stress: Crypto markets have gotten rocked in November. As the S&P 500 pulled just 6% back off its all-time highs, BTC and MSTR plunged 35% and 67% off their respective peaks, putting both assets solidly in "bear market" territory.
- DAT Contagion: Other companies that would be negatively affected by an MSCI rule change include: Mara Holdings, Riot Platforms, Hut 8, and Japan’s Metaplanet.
- Decision Deadline: MSCI has promised to publish a final decision in this matter by January 15, 2025. Any changes will be reflected in MSCI's February 2026 Index Review.
What's the Take?
The decision to exclude MSTR (and other DATs) from popular stock index has the potential to perpetuate well over $11B of price indiscriminate selling, a flow dynamic that would almost certainly spill over into token markets to punish the broader crypto industry.
While Strategy founder Michael Saylor contends that his company is an entirely new type of enterprise – neither fund, trust, nor holding company as alleged by MSCI – the prospect of widespread index delisting will no doubt become a major headwind for Strategy (if it has not already).
Response to MSCI Index Matter
— Michael Saylor (@saylor) November 21, 2025
Strategy is not a fund, not a trust, and not a holding company. We’re a publicly traded operating company with a $500 million software business and a unique treasury strategy that usesBitcoin as productive capital.
This year alone, we’ve completed…
