Strategy - formerly MicroStrategy and one of the world’s largest Bitcoin treasury holders - is once again drawing the attention of major index providers. MSCI is examining whether companies with heavily crypto-weighted balance sheets should remain part of core equity indices.
MSCI will decide in January 2026 whether Strategy can still be classified as a traditional technology company given its overwhelming Bitcoin exposure. The consequence could be a reallocation of passive capital flows. JPMorgan believes that despite potentially significant outflows, Strategy is unlikely to face a new shock phase, as investors have already priced in the risk.
Subscribe to our newsletter
The best articles of the week, directly delivered into your mailbox.
Why Strategy has become a test case for index providers
A Bloomberg report shows that Strategy has become an anomaly within the global index landscape: the company no longer derives most of its value from its operational software business but from its massive Bitcoin position, which now dominates its corporate valuation.
MSCI is questioning whether a company that functionally resembles a Bitcoin ETF should continue to be included in traditional equity indices. An exclusion would have direct consequences, particularly for ETF issuers and funds that must passively track MSCI benchmarks. Such a step could trigger billions in outflows, as funds would be forced to sell the stock. The uncertainty has weighed heavily on Strategy in recent months.
Why the market has already priced in the risk, according to JPMorgan
Despite the potential scale of outflows, JPMorgan does not expect renewed pressure on the stock. The reason: Strategy has lost a substantial portion of its market capitalization over several months, which investors say already reflects expectations of an index exclusion. JPMorgan interprets recent price movements as an “anticipated adjustment process.” Even if MSCI decides to exclude the company, the event would not be an unpriced shock but rather the confirmation of a scenario institutional investors have long accounted for.
At the same time, this creates the possibility of the opposite effect: if MSCI decides against an exclusion, the stock could benefit in the short term, as market participants have so far not priced in a positive outcome. Strategy has become emblematic of a broader debate: how should index providers classify companies whose balance sheet structures fundamentally differ from traditional business models due to digital assets? MSCI is reviewing new classification frameworks that could affect other crypto-heavy companies in the future. The outcome of this process could therefore set an industry-wide precedent extending far beyond Strategy.
