MicroStrategy, led by Executive Chairman Michael Saylor, revealed on January 20 that it may be removed from several major U.S. equity indexes, including the MSCI USA Index and the Nasdaq-100, due to its unusually high exposure to Bitcoin (BTC).

? JPMorgan cautions that MSCI's potential removal of Strategy from key equity indices could lead to significant passive investment outflows, impacting firms with bitcoin exposure.

This action may pressure firms like MicroStrategy, known for its extensive Bitcoin reserves, as… pic.twitter.com/4G3G97J1Sb

— Giorgi Apkhazava (@Giorgiapkh) November 20, 2025

MSCI Reviewing Companies With Digital Asset Exposure Over 50%

MicroStrategy holds the majority of its total assets in Bitcoin, a structure that has prompted index provider MSCI to review whether companies with more than 50% of total assets in digital assets should remain in its equity benchmarks.

The company currently has approximately USD 9 billion tied to passive index-tracking funds. Being removed from major indexes could trigger forced selling from those funds, raising concerns about liquidity and market impact.

Some market participants argue that MicroStrategy now resembles an investment fund rather than an operating company, due to the scale of its Bitcoin holdings.

Decision Due January 15, 2026 — Billions in Outflows Expected

MicroStrategy holds 649,870 BTC, valued at approximately USD 48.37 billion. MSCI’s evaluation period ends on December 31, 2025, with final decisions set to be announced on January 15, 2026.

According to a January 20 report from JPMorgan, a removal from MSCI’s indexes alone could trigger USD 2.8 billion in outflows. If additional index providers follow the same path, total outflows could reach up to USD 8.8 billion.

While JPMorgan analysts noted that active fund managers would not be required to sell, they warned that index exclusion could still damage MicroStrategy’s reputation, reduce liquidity, and weaken its appeal to institutional investors.

Stock Under Pressure as Index Concerns Grow

MicroStrategy’s stock has recently declined more sharply than Bitcoin itself. Market sentiment suggests that investors are more concerned about potential index-related selling pressure than BTC’s market weakness.

MicroStrategy has positioned itself as a “Bitcoin treasury,” aggressively accumulating BTC using a leveraged strategy. However, it has already been excluded from the S&P 500 Index, which determined the company lacks traditional recurring revenue and more closely resembles an ETF than a conventional enterprise.

Index decision-makers have also noted that MicroStrategy’s structure differs substantially from the recently approved spot Bitcoin ETFs.

While Chairman Michael Saylor describes the company’s model as a “new concept,” tensions with the traditional financial system continue to grow.

If removed from additional indexes, MicroStrategy could face reduced ability to raise capital through stock or debt offerings, posing material challenges for its long-term financial strategy.

Despite this, MicroStrategy’s approach remains one of the boldest corporate Bitcoin investment strategies to date though the market has yet to fully agree on how to value it.