Strategy Faces Index Removal Risk as MSCI Proposal Threatens $2.8B in Passive Outflows

Strategy Inc. may be excluded from major equity indices under a proposed MSCI rule targeting firms with over 50% digital asset holdings. JPMorgan estimates the change could trigger approximately $2.8 billion in forced selling from MSCI-tracking funds, with total passive exposure near $9 billion. The company claims its Bitcoin treasury can fund preferred dividends for 71 years at current prices.