JPMorgan analysts have raised alarms about MicroStrategy (MSTR) potentially being removed from major equity indexes, including the MSCI Global Investable Market Indexes, due to its heavy reliance on Bitcoin for treasury strategy. The warning highlights a key decision expected from MSCI in mid-January 2026, which could redefine how traditional markets treat companies with significant digital asset exposure.
If MSCI excludes MicroStrategy, JPMorgan estimates that passive funds could be forced to sell approximately $2.8 billion in MSTR shares. Should other index providers like Russell follow suit, total outflows could reach $8.8 billion, creating substantial mechanical selling pressure. This would not only harm the stock's liquidity but also reduce its attractiveness to institutional investors who depend on index inclusion for compliance.
The analysis also notes that similar risks could extend to other Bitcoin-holding firms, such as Mara Holdings, Riot Platforms, Hut 8, and Metaplanet, emphasizing the broader implications for the corporate-Bitcoin sector. The ongoing MSCI review represents a critical test for how traditional finance integrates cryptocurrency-focused companies.
