JPMorgan: If Strategy stocks are removed from the index, they may face billions of dollars in fund withdrawals.

On November 21, JPMorgan stated in a report on Thursday that if the global financial index company MSCI removes Bitcoin “Treasury Giant” Strategy (MSTR) from its stock index, the related outflow of funds could reach up to $2.8 billion; if other exchanges and index compilers follow suit, the total outflow could reach up to $11.6 billion. Analysis indicates that the recent decline in MSTR's stock price—coupled with the overall weak performance this year—is more due to market concerns that it may be removed from MSCI and several indices such as Nasdaq 100 and Russell 1000, rather than a drop in Bitcoin's own price. “It is precisely because of the inclusion in these indices that Bitcoin's exposure has indirectly seeped into the portfolios of retail and institutional investors,” analysts wrote. “However, as MSCI is now considering removing MicroStrategy and other companies primarily holding digital assets from the stock index, this previous indirect exposure may reverse.” MSCI is evaluating a proposal to exclude companies whose primary business is holding Bitcoin or other cryptocurrencies, with such assets accounting for more than 50% of their balance sheet. Last month, MSCI stated that this “consultation” will continue until the end of this year, with a final decision to be made by January 15.