Michael Saylor’s Strategy now faces one of its toughest challenges yet. The stock risks removal from major benchmarks that once pushed its Bitcoin-focused approach into mainstream portfolios.
A Bloomberg report this week highlighted a note from JPMorgan analysts, who warned that Strategy could be removed from the MSCI USA and Nasdaq 100 indexes.
They estimate that MSCI’s removal alone could spark up to $2.8 billion in outflows, with even greater losses if other index providers take similar action.
Passive funds linked to the company already hold nearly $9 billion in market exposure. A final decision is expected by January 15.
Saylor’s strategy faces threat of index removal
Saylor’s company, which was founded on the idea of Bitcoin exposure in the form of an equity ticker, may lose trading volume.
Losing index inclusion would undermine the company’s institutional credibility, which has been crucial for its popularity among fund managers.
The strategy of the company has had a straightforward cycle. It sells stock, buys Bitcoin, and rallies to rationalize further stock issuance and Bitcoin acquisition.
At its peak, the company’s valuation was several times greater than the value of its Bitcoin holdings. However, its premium has risen to a great extent. And now its market valuation is near that of its Bitcoin reserves.
JPMorgan analysts cautioned that non-inclusion in major indexes will damage the company in terms of liquidity, cost of funding, and interest for investors. They wrote that falling out of a major index would be considered negative by market players.
According to MSCI’s October 10 update, some market participants perceive digital asset treasury companies as comparable to investment funds. These funds are not eligible for index inclusion.
MSCI’s new proposal targets digital asset companies
MSCI is changing the index rules to accommodate digital asset companies. The new proposal by MSCI will only list companies whose digital assets constitute more than 50% of their overall investment on its Global Investable Market Indexes.
This pressure follows a terrible decline in not only Bitcoin prices but also the company stock. The company has lost more than 60% of its stock price. Since the record level set last November and the premium that previously attracted investors.
Nevertheless, the stock is up over 1,300% over time since Saylor announced the acquisition of Bitcoin in August of 2020. Nonetheless, Bitcoin has fallen over 30% since October, and the crypto market has lost over $1 trillion in value.
Strategy’s mNAV has fallen to just above 1.1, tracking the ratio of enterprise value to Bitcoin holdings. This indicates that the equity is trading only marginally higher than the value of the underlying coins.
Earlier this week, the company bought 8,178 Bitcoin at a cost of $835.6 million, at an average price of $102,171 per coin, covering all fees and expenses.
The company owns 649,870 Bitcoin as of November 16, 2025, which it has bought at a price of $48.37 billion and an average price of $74,433 per Bitcoin.
Regardless of the current constraints in the market, the firm has adhered to its strategy of acquiring Bitcoins.
Investors are waiting to see if index providers and capital markets will continue backing the strategy as the crypto cycle shifts.