Strategy (MSTR), the largest publicly traded holder of bitcoin , is currently in discussions with index provider MSCI regarding a potential removal from significant equity indices.
A verdict is expected by January 15, Reuters has reported. This outcome could have substantial implications for the Virginia-based company in Tysons Corner.
JPMorgan analysts projected last month that such a removal could lead to outflows of as much as $8.8 billion if other index providers mimic MSCI’s actions. The reason behind this is that Strategy’s inclusion in indices like MSCI USA and MSCI World incorporates it into many passive investment vehicles.
“We’re participating in that process,” Saylor informed Reuters when queried about MSCI, adding that he “was uncertain” about the validity of JPMorgan’s predictions.
With a balance sheet holding 650,000 BTC, Strategy has faced scrutiny in recent weeks as the leading cryptocurrency’s value dropped from an all-time high exceeding $120,000 to a low around $82,000.
Though the bitcoin price has bounced back to $93,000, it remains roughly 26% lower than its peak. Critics contend that Strategy’s approach of incurring debt and issuing equity to amass BTC is not viable. The company’s stock has decreased by 37% this year.
UPDATE (Dec. 3, 10:40 UTC): Clarifies omitted attribution in the headline.
