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Danger Alarm from JP Morgan: Removal of Strategy from Index Could Trigger a Major Crash!

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Danger Alarm from JP Morgan: Removal of Strategy from Index Could Trigger a Major Crash!

Jakarta, Pintu News – The company known for its massive purchases of Bitcoin (BTC), Strategy (formerly MicroStrategy), is facing a major risk that could shake up their market value.

JPMorgan, through its analysts, recently issued a warning that Strategy could lose its place in MSCI’s passive indices, which would have a significant impact on their market capitalization. This decision is scheduled to be announced on January 15, 2026, raising serious concerns among investors.

Implications of Removal from MSCI Index

If MSCI decides to remove Strategy from its index list, the company could lose approximately $2.8 billion of its market capitalization value. The MSCI USA and MSCI World indices are two of the few indices that currently include Strategy, providing access to the broad capital of investors who follow those indices.

Moreover, JPMorgan analyst Nikolaos Panigirtzoglou also warned that removal from other indices could lead to additional losses of up to $8.8 billion. This shows how crucial being in major indices is for companies like Strategy, which have significant exposure to Bitcoin (BTC) as their main asset.

Why the Strategy Relies on Indices

microstrategy shares rise thanks to bitcoin
Source: Decrypt

Investors, both retail and institutional, often choose to invest in passive indices rather than picking stocks directly. These indices allow investors to diversify their risk while still investing by geography and market capitalization.

Read also: Japan’s Metaplanet Plans to Raise $135 Million for Bitcoin Investment

Presence in such indices is very beneficial as it automatically attracts capital without the need for direct intervention from investors. Conversely, losing a place in an index can be very costly, especially for large companies whose capitalization relies heavily on passive investment.

Potential Long-term Impacts

The removal of the Strategy from MSCI and potentially other indices could not only impact their market capitalization value, but could also affect investor perception and confidence. This could trigger higher volatility in their share prices and may make it more difficult for companies to obtain financing through capital markets.

Moreover, this decision could set a precedent for other companies that have significant crypto assets in their portfolio. It shows the importance of asset diversification and may force these companies to revisit their investment strategies in crypto.

Conclusion

With MSCI’s upcoming decision, the future of the Strategy as part of the major indices is uncertain. Investors and market analysts will be waiting with great anticipation to see how this decision will affect the market as a whole and in particular, the fate of the Strategy in the face of this new challenge.

FAQ

What is Strategy?

Strategy, formerly known as MicroStrategy, is a company famous for their massive investment in Bitcoin (BTC).

Why might MSCI exclude Strategy from its index?

MSCI is considering excluding companies that have 50% or more of their assets in crypto from its index, which affects Strategy due to their large exposure to Bitcoin (BTC).

How much might Strategy lose if it is removed from the MSCI index?

Strategies could lose about $2.8 billion of their market capitalization value if they are removed from the MSCI index.

When will MSCI’s decision on Strategy removal be announced?

MSCI’s decision on whether the Strategy will be removed from its index is scheduled to be announced on January 15, 2026.

What are the other impacts of removing Strategy from the index?

Removal from the index could increase the volatility of Strategy’s share price and affect their ability to obtain financing through the capital markets.

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