The largest public Bitcoin holder may see billions in passive fund outflows as MSCI considers exclusion from key equity benchmarks, reflecting investor concerns over its debt-fueled BTC accumulation.
Strategy Inc. (MSTR) is in discussions with MSCI over a potential removal from major equity benchmarks, with a decision expected by Jan. 15. JPMorgan estimates that such an exclusion could trigger up to $8.8 billion in outflows if other index providers follow suit, given MSTR’s presence in passive investment products. The company, which holds 650,000 BTC, has seen its stock drop 37% in 2025 amid criticism of its debt and equity issuance strategy to acquire more Bitcoin, as BTC prices fell from over $120,000 to as low as $82,000 before recovering to $93,000. Meanwhile, options on BlackRock's IBIT Bitcoin ETF have climbed to ninth in U.S. market size, surpassing gold ETFs, with over 7.7 million contracts open despite BTC's price volatility.