Strategy and other companies that buy bitcoins may be excluded from major market indices as a result of JP Morgan’s initiative. In response, Michael Saylor’s company wants to “boycott” the bank.
Strategy will be removed from indexes?
Morgan Stanley Capital International (MSCI), the company that sets the criteria for including companies in stock indices, is wondering whether it should exclude companies that intensively purchase cryptocurrencies. In practice, entities such as Strategy – those whose assets consist mainly of digital assets – may disappear from the indexes. The point is that MSCI believes that such companies are in fact not enterprises, but investment funds.
The decision is to be made at the end of the year, and the analysis of which companies are to be removed from the indexes is to begin in February.
So far, nothing has been decided, but the cryptocurrency community is reacting quite nervously. Strategy wants to boycott the popular bank.
I just withdrew $20 million from (JP Morgan) Chase and sued them for credit card fraud
– said real estate investor and Bitcoin supporter Grant Cardone.
Break up JP Morgan and buy Strategy and BTC
– added Bitcoin supporter Max Keiser.
What does the exclusion of Saylor’s company from the indexes mean?
Strategy entered the Nasdaq 100, the stock index of the 100 largest technology companies by market capitalization, in December 2024. This gave the company the opportunity to raise capital from a new group of investors. And that is why excluding a company from this index is so dangerous – it means loss of capital and it is more difficult to obtain new capital.
Strategy founder Michael Saylor responded to MSCI’s proposed policy change on Friday, saying:
Strategy is not a fund, trust or holding company.
He added that “trust funds passively hold assets.”
Holding companies own assets. We create, structure, broadcast and act
– he said, adding that Strategy is a “financial company based on a bitcoin-based structure.”
If MSCI actually introduces changes, large bitcoin companies may be less willing to buy BTC, which will translate into the price of the main cryptocurrency.
Today, 1 BTC costs approximately USD 87,000.
