JPMorgan: If Strategy stocks are removed from the index, they may face billions of dollars in capital outflows

ChainCatcher reports, JPMorgan stated in a report on Thursday that if global financial index provider MSCI removes Bitcoin “vault giant” Strategy (MSTR) from its stock indices, related outflows could reach as much as $2.8 billion; if other exchanges and index compilers follow suit, the total outflow could reach up to $11.6 billion.

The analysis pointed out that the recent decline in MSTR’s stock price—combined with its overall weak performance this year—is more due to market concerns that it may be removed from indices such as MSCI, Nasdaq 100, and Russell 1000, rather than due to a drop in Bitcoin’s own price.

“It is precisely the inclusion in these indices that has allowed Bitcoin exposure to permeate retail and institutional investors’ portfolios in an indirect way,” analysts wrote. “However, as MSCI is now considering removing MicroStrategy and other companies whose main holdings are digital assets from stock indices, this previous indirect exposure may be reversed.”

MSCI is evaluating a proposal to exclude companies whose primary business is holding Bitcoin or other crypto assets, and where such assets account for more than 50% of their balance sheet.

Last month, MSCI stated that this “consultation” will continue until the end of this year, with a final decision to be made by January 15.