Strategy, previously MicroStrategy and led by Michael Saylor, is now under the microscope. The company’s large Bitcoin holdings have triggered concerns about whether it might be removed from major indices like MSCI USA and the Nasdaq 100. For investors and market watchers, this raises questions about the implications for Strategy’s visibility and portfolio inclusion.
Bitcoin’s Recent Pullback Adds Pressure
Earlier this year, the cryptocurrency market showed strong momentum, and Saylor’s bullish strategy seemed to be paying off. But Bitcoin recently experienced a sharp retracement—over 30% from its all-time highs—marking one of the toughest weeks for the digital asset since November 2022. For Strategy, this decline has intensified scrutiny of its index eligibility.
Saylor Explains Strategy’s Identity
Michael Saylor addressed concerns directly on X (formerly Twitter). He emphasized that Strategy is not a fund, trust, or mere holding company. Instead, it is a publicly traded operating business with a $500 million software division and a distinctive treasury approach that leverages Bitcoin as productive capital rather than passive investment.
Saylor outlined that the firm has executed five public offerings of digital credit securities this year alone—STRK, STRF, STRD, STRC, and STRE—totaling more than $7.7 billion. He also highlighted the launch of Stretch (STRC), a new Bitcoin-backed treasury instrument providing variable USD yields for both institutional and retail investors.
Active Financial Product Operations Distinguish Strategy
Unlike traditional funds or trusts that simply hold assets, Strategy actively structures, issues, and manages financial products. Saylor described the firm’s vision as creating a pioneering enterprise: a Bitcoin-backed structured finance company blending capital markets innovation with software development.
He stressed that index inclusion should not define Strategy, reaffirming the company’s long-term focus on building “the world’s first digital monetary institution on a foundation of sound money and financial innovation.”
MSCI Considers Excluding Digital Asset Firms
JPMorgan analysts noted that MSCI’s potential decision—expected on January 15, 2026—could have significant financial consequences. Exclusion from key indices might trigger Strategy-related outflows between $2.8 billion and $8.8 billion. Even though active managers are not forced to follow index changes, market perception could reduce liquidity and increase funding costs for the firm.
MSCI has indicated that some investors see digital asset treasury firms as operating similarly to investment funds. As a result, MSCI is proposing that companies holding 50% or more of assets in digital assets could be excluded from global investment indices.
Market Impact Mirrors Bitcoin Movements
Strategy’s stock price trend continues to reflect Bitcoin’s recent fluctuations, as shown on daily charts. Investors are closely watching how both the cryptocurrency market and index decisions might influence Strategy’s liquidity, funding, and long-term strategy.
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