MSCI Considers Removing Crypto-Heavy Firms Including MicroStrategy
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Key Points: MSCI’s proposed exclusion of MicroStrategy over crypto holdings sparks debate. Potential for $10-15 billion in fund outflows. Market questioning sustainable business models with heavy crypto exposure. MSCI plans to exclude MicroStrategy from its global indices due to high Bitcoin holdings, potentially impacting the company’s stock value significantly, with a decision expected by January 15. Exclusion could spark $10-15 billion in outflows, affecting Bitcoin volatility and raising sustainability questions about such treasury strategies in the cryptocurrency sector. MSCI’s Potential Exclusion Threatens $2.8 Billion in Fund Outflows MSCI is considering removing firms like MicroStrategy from its indices due to high digital asset holdings. MicroStrategy has accumulated over 671,268 BTC, which could lead to its removal based on MSCI’s criteria. Additionally, other companies, including Coinbase and Bitcoin miners, may also be affected. MSCI’s review aimed to differentiate companies holding substantial digital assets from traditional operations. The decision could impact the stock valuations of around 39 public companies with heavy exposure to digital currencies. If excluded, companies could face considerable stock demand reduction. MicroStrategy, for instance, might see up to $2.8 billion in fund outflows, according to JPMorgan analysts. Market sentiment is cautious, with discussions on the sustainability of business models incorporating significant digital assets. The decision is expected early next year, with significant implications for digital asset integration in corporate strategies. Michael Saylor, Executive Chairman, MicroStrategy, commented on MSCI’s proposal, “We urge MSCI to maintain neutral index standards to preserve market integrity and innovation.” Crypto Holdings Could Reshape Financial Classification Standards Did you know? Similar precedents have not emerged from major index providers before, making MSCI’s decision potentially pivotal in defining standards for firms with significant digital asset exposure. Bitcoin (BTC) currently trades at $88,732.01 with a market cap of $1.77 trillion, according to CoinMarketCap. It represents a 59.03% market dominance,…
Filed under: News - @ December 21, 2025 12:25 pm