Strategy Faces Up to $11.6B in Outflows if Removed from Major Indices, JPMorgan Says

Strategy (MSTR) could face outflows of up to $2.8 billion if MSCI removes it from its equity indices, with total outflows potentially reaching $11.6 billion if other index providers follow suit, JPMorgan said in a report on Nov. 21. The recent decline in MSTR's stock price is primarily driven by concerns over potential removal from MSCI, Nasdaq 100, and Russell 1000 indices rather than Bitcoin's price movements, analysts noted. MSCI is evaluating a proposal to exclude companies whose primary business is holding Bitcoin or other crypto assets representing over 50% of their balance sheets, with a final decision expected by Jan. 15 following a consultation period ending this year.