In a recent filing with the US Securities and Exchange Commission, the strategy, previously known as MicroStrategy, made the announcement of a fresh Bitcoin purchase. This latest purchase has taken the company’s total Bitcoin stocks to about 680,000 BTC. Presently, the figures reveal that Strategy has around 672,497 BTC, which further strengthens its long-term position in the digital currency market.
The market has reacted negatively, however, to this statement. The company’s stock (MSTR) has lost more than 50% of its value since the start of 2025. On Monday, the shares were around $163, which indicated that the company’s valuation was still under pressure.
Moreover, the firm is in line to suffer a drawback in the index area. Strategy may soon be formally announced as being just ten days away from being kicked off the construction of the Morgan Stanley Capital International (MSCI) indexes.
In an October proposal, MSCI mentioned that it should be considered not to let companies that have their digital assets constituting 50% or more of their total assets to be part of its global benchmarks. MSCI reasoned that such entities are more and more similar to investment funds, which are not allowed to be part of its indexes.
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MSCI Review Poses a Risk of Huge Index Outflows for the Company
Currently, MSCI is conducting a public consultation to figure out if Digital Asset Treasury (DAT) companies, such as Strategy, should exist in its indexes or not. If MSCI takes a decision to cut off these companies, it will set a precedent that other big index designers might follow later on.
In a public letter, the CEO of Strategy, Phong Le, and co-founder, Michael Saylor, cautioned against the potential impact of an MSCI exclusion. They indicated that such an action could activate the forced selling of Strategy shares worth $2.8 billion around, with the entire sector feeling the impact of the negative consequences.
TD Cowen analysts pointed out that around $2.5 billion of Strategy’s market capitalization depends on MSCI and another $5.5 billion on other indexes.
On the other hand, the research done by JPMorgan indicates that excluding Strategy from MSCI could result in $2.8 billion outflows for the company, and the figure could soar to $8.8 billion if the company were to lose its membership in additional indices, such as the Nasdaq 100, CRSP US Total Market Index, and numerous Russell indexes that are part of the London Stock Exchange Group (LSEG).
