JPMorgan Chase: If Strategy's stock is removed from the index, it may face billions of dollars in capital outflow.

JPMorgan Chase stated in a report on Thursday that if global financial index provider MSCI removes Bitcoin "vault giant" Strategy (MSTR) from its stock indices, related capital outflows could reach as high as $2.8 billion; if other exchanges and index compilers follow suit, the total outflow could reach $11.6 billion. The analysis points out that MSTR's recent stock price decline—coupled with its overall weak performance this year—stems more from market concerns about its potential removal from MSCI and multiple indices such as the Nasdaq 100 and Russell 1000, rather than from a decline in Bitcoin's own price. "It is precisely because of these indices' inclusion that Bitcoin exposure has indirectly seeped into the portfolios of retail and institutional investors," the analysts wrote. "However, with MSCI now considering removing MicroStrategy and other companies with predominantly digital asset holdings from its stock indices, this previous indirect penetration could be reversed." MSCI is evaluating a proposal to exclude companies whose primary business is holding Bitcoin or other crypto assets, and where such assets account for more than 50% of their balance sheets. MSCI stated last month that this "consultation" will continue until the end of this year, with a final decision expected by January 15th.