Written by: Zhao Ying
Source: Wallstreetcn
Index compilation giant MSCI has proposed to remove companies holding large amounts of crypto assets from its global investable market indices, a potential change that is sparking strong opposition in the crypto community. Strategy, which holds a huge amount of bitcoin, is the first to bear the brunt, while JPMorgan, which released the related research report, has unexpectedly become the target of resistance.
MSCI recently issued a statement proposing to exclude "digital asset treasury companies" holding more than 50% of their balance sheet in cryptocurrencies from its indices, with the policy change expected to take effect in January 2026. JPMorgan shared this news in a research report and was immediately met with fierce criticism from the bitcoin community, with many in the crypto space calling for a "boycott" of the financial services giant.
The team of JPMorgan analyst Nikolaos Panigirtzoglou warned that if Strategy is ultimately excluded, its valuation will face "considerable pressure." Analysts estimate that of Strategy's approximately $59 billion market capitalization, about $2.8 billion is held by funds that explicitly track MSCI indices. Once the exclusion decision takes effect, it could trigger a mandatory sell-off of up to $2.8 billion.
This index adjustment could trigger a chain reaction. Excluded crypto treasury companies would lose inflows from passive funds, and relevant funds and asset management companies would be forced to automatically sell the stocks of these companies, which could in turn have a negative impact on the cryptocurrency market.
A Wave of Boycotts Sweeps the Crypto Community
JPMorgan has become the focus of the crypto community's anger for publishing the research report on the MSCI index adjustment.
Real estate investor and bitcoin advocate Grant Cardone stated on social media: "I just pulled $20 million out of Chase Bank and sued them for credit card misconduct." Bitcoin advocate Max Keiser called out: "Crush JPMorgan, buy Strategy and bitcoin."
This online boycott movement quickly fermented, highlighting the crypto community's sensitivity to intervention by traditional financial institutions. Although JPMorgan was merely relaying MSCI's policy proposal, as the messenger it has borne the brunt of the crypto community's collective resistance.
Strategy Founder Responds to Policy Change
Strategy founder Michael Saylor broke his silence last Friday to respond to MSCI's proposed policy change.
He emphasized: "Strategy is not a fund, not a trust, nor a holding company. Funds and trusts passively hold assets, holding companies own investments, but we create, build, issue, and operate."
Saylor defined Strategy as a "bitcoin-backed structural financial company," attempting to distinguish it from entities that passively hold assets. Strategy entered the Nasdaq 100 index in December 2024, an index that covers the 100 largest companies by market capitalization on the technology exchange. Entry into this index has allowed Strategy to benefit from passive capital inflows from funds and investors holding the Nasdaq 100.
Market Impact of Index Exclusion
According to MSCI's proposed new standards, any treasury company with cryptocurrencies accounting for 50% or more of its balance sheet will lose index eligibility. These companies will face two choices: either reduce their crypto holdings below the threshold to retain index eligibility, or lose passive capital inflows from market indices.
JPMorgan analysts pointed out that this speculation may be one of the factors putting pressure on Strategy's stock price recently. Of the company's approximately $59 billion market capitalization, about $9 billion is held by investment vehicles tracking various indices.
Analysts warned that if crypto treasury companies affected by MSCI's proposal suddenly sell off, it could force digital asset prices down. Passive mutual funds and ETFs tracking MSCI indices will be forced to sell related stocks after the index adjustment takes effect, and this mandatory sell-off pressure will have a dual impact on company valuations and the cryptocurrency market.
