Global index compilation organization MSCI is considering removing crypto treasury companies from its indices, which could trigger forced sell-offs in passive funds tracking these indices amounting to as much as $10 billion to $15 billion.
(Background: Strategy retains Nasdaq 100 index seat! Michael Saylor: Will continue accumulating Bitcoin until the market shuts up)
(Additional context: Reader’s letter: Why does MSCI have to act? Strategy is shaking the index system)

Table of Contents

• 39 companies face removal, with Strategy accounting for 74.5% of the impact
• MSCI’s considerations: When companies become “asset pools”
• Industry backlash: Balance sheets shouldn’t be the only standard
• The showdown in January 2026: What should investors focus on?

A storm that could reshape the institutionalization of cryptocurrencies is brewing. The global index giant MSCI is evaluating whether to remove companies with more than half of their assets in cryptocurrencies from its indices. If this happens, it will force passive funds tracking MSCI indices to sell off related holdings, with an estimated capital outflow of $10 billion to $15 billion. For the crypto market that has been declining for nearly three months, this is undoubtedly a further blow. How will MSCI’s decision affect the fate of Bitcoin treasury companies like Strategy?

39 companies face removal, with Strategy accounting for 74.5% of the impact

Advocacy group BitcoinForCorporations, opposing MSCI’s proposal, estimates based on a “verified preliminary list” that a total of 39 companies could be affected, with a combined market cap of $113 billion. The group cites analysis from J.P. Morgan indicating that if Strategy, led by Michael Saylor, is removed, it could face a capital outflow of $2.8 billion, accounting for 74.5% of the affected companies’ total market cap.

Analysts estimate the total potential capital outflow from all affected companies could reach $11.6 billion. Since MSCI indices are a key benchmark for passive investment funds, once companies are removed, ETFs and mutual funds tracking these indices will be forced to sell related holdings. As of writing, BitcoinForCorporations’ petition has gathered 1,268 signatures.

MSCI’s considerations: When companies become “asset pools”

In October this year, MSCI announced it is consulting the investment community on this issue. Its core concern: When a listed company’s main value derives from its holdings of crypto assets rather than traditional operations, should it still be considered a “business enterprise”?

Strategy’s business model is the trigger for this controversy. The company’s cycle of “issuing debt to buy coins, rising market cap, entering more indices, being forced to buy by passive funds, stock price rising again, issuing more debt to buy coins” has transformed it from a software company into a de facto Bitcoin investment vehicle. MSCI worries that if such companies are allowed to remain in stock indices, the essence of the index could gradually shift from a “collection of enterprises” to an “asset pool of crypto assets.”

Industry backlash: Balance sheets shouldn’t be the only standard

However, BitcoinForCorporations believes MSCI’s criteria are unfair:

“Using a single balance sheet indicator cannot reflect whether a company is a business enterprise. This rule could lead to companies being removed even if their customers, revenue, operations, and business models remain unchanged.”

Several major industry players have recently voiced opposition. On December 5, Nasdaq-listed company Strive urged MSCI to “let the market decide” whether to include companies holding Bitcoin in passive investments. A few days later, Strategy stated in an open letter that the proposed policy change would bias MSCI against cryptocurrencies as an asset class, rather than allowing index providers to act as neutral arbiters. The group called on MSCI to “withdraw the proposal and continue classifying companies based on their actual business models, financial performance, and operational characteristics.”

The showdown in January 2026: What should investors focus on?

MSCI will announce its final decision on January 15, 2026, and include the proposed implementation plan in the index review in February 2026. For investors holding stocks of Bitcoin treasury companies like Strategy, this will be a critical turning point — not only potentially facing short-term capital outflows but also long-term impacts on these companies’ financing ability and market valuation.

It’s worth noting that although Strategy has successfully retained its Nasdaq 100 index seat, MSCI’s decision could have broader implications. Investors should closely monitor the January 15 announcement and assess whether their portfolios include potentially affected assets. Managing risk exposure prudently before uncertainty clears is a wise move.