Potential Impact of MSCI's Decision on MicroStrategy and Bitcoin Exposure

According to BlockBeats, JPMorgan reported that if global financial index provider MSCI removes MicroStrategy (MSTR), known as a major Bitcoin holder, from its stock index, the potential outflow could reach $2.8 billion. If other exchanges and index compilers follow suit, the total outflow might escalate to $11.6 billion. Analysts have noted that the recent decline in MSTR's stock price, coupled with its overall weak performance this year, is largely due to market concerns about its potential removal from indices such as MSCI, Nasdaq 100, and Russell 1000, rather than a drop in Bitcoin's price itself. "The inclusion of these indices has allowed Bitcoin exposure to indirectly permeate retail and institutional investors' portfolios," analysts stated. "However, with MSCI now considering the removal of MicroStrategy and other companies primarily holding digital assets from stock indices, this previous indirect exposure might reverse." MSCI is currently evaluating a proposal to exclude companies whose main business involves holding Bitcoin or other crypto assets, especially if these assets constitute more than 50% of their balance sheets. MSCI announced last month that this consultation will continue until the end of the year, with a final decision expected by January 15.