MSCI Considers Removing Strategy from Index, Could Trigger $8.8B Sell-Off

Derived from 528btc, MSCI is reportedly considering removing Strategy, a major holder of Bitcoin, from its key global benchmark index, with a decision expected on January 15, 2026. If the removal is finalized, passive funds tracking the MSCI index would be forced to sell $8.8 billion worth of shares, potentially disrupting one of the most important links between traditional finance and the crypto market. Strategy’s stock has already fallen over 37% this year amid broader market weakness, and the company’s Bitcoin holdings have amplified its exposure to crypto price swings. MSCI’s proposed rule would reclassify such firms as “digital asset funds,” barring them from inclusion in major equity indices. The timing of the potential removal is particularly sensitive, as Bitcoin has fallen sharply from its $120,000 peak due to risk-off sentiment and macroeconomic concerns. JPMorgan analysts estimate that if other index providers follow MSCI’s lead, outflows could reach $8.8 billion. Strategy’s business model relies heavily on index inclusion to maintain investor confidence and liquidity. Market observers are closely watching the final decision in January, with two possible outcomes: removal leading to immediate stock price declines, or retention stabilizing the stock. Strategy CEO Michael Saylor acknowledged the stock’s inherent volatility and confirmed ongoing discussions with MSCI.