Key takeaways
Where will the $8 billion pressure come from?
Of funds with positions in MSTR through the MSCI, and if other indices follow.
What is Saylor’s response?
He said Strategy is an operating company with a $500 million software business and active expansion plans to raise capital.
Michael Saylor’s (Nasdaq: MSTR) strategy could remain silent until MSCI’s review report in mid-January 2026.
According to investment bank and brokerage house TD CowenMSTR stock could face about $8 billion in selling pressure if MSCI removed it from the index. In a report, the firm said,
“We believe ~$2.5 billion of value is attributable to MSTR’s holdings within the MSCI indices, with another ~$5.5 billion in other indices that could, in theory, follow MSCI’s lead.”
MSCI’s review, which was made public last week, was first shared internally on October 10.
According to the global index, public Bitcoin treasury companies, such as Strategy, are passive and act as investment funds; therefore, they should not be listed. Only operating companies are included in the index.
But TD Cowen argued that Strategy was an operating company with a $500 million software business, despite representing a small part of the company’s total value. The firm added,
“The strategy is clearly not an investment fund. Therefore, we wonder if perhaps MSCI is simply expressing a bias against Bitcoin.”
Saylor’s response to MSCI
Last week, Michael Saylor, founder of Strategy, also debunked the planned exclusion from the index and aggregate,
“The strategy is not a fund, not a trust, not a holding company. Funds and trusts passively hold assets. No passive vehicle or holding company could do what we are doing.”
He joked that “the index ranking does not define” the strategy and reiterated his long-term conviction in BTC.
In separate social media posts, Saylor added that he will not “back down,” noting that they have increase 21 billion dollars in 2025 alone.
Source: X
It seemed like a subtle mockery of being labeled a “passive company.” Passive companies rarely raise capital because they lack operations that require expansion.
Raising $21 billion meant that, by definition, Strategy is an operating company that meets the listing requirements of the MSCI index.
It remains to be seen whether MSCI will back down or proceed with delisting MSTR early next year.
Meanwhile, Bitcoin [BTC] it remained above $80,000 and even attempted to recover $90,000 on November 24. MSTR continued and rebounded 5% to $179.
