Strategy (MSTR), the largest public holder of bitcoin is in talks with index provider MSCI about a possible decision to remove the company from major equity benchmark indices.
A decision is expected on January 15, Reuters reported. The outcome could have major consequences for the Tysons Corner, Virginia-based company.
JPMorgan analysts estimated last month that a removal could trigger outflows of up to $8.8 billion if other index providers follow MSCI’s lead. This is because Strategy’s inclusion in indices such as MSCI USA and MSCI World makes it part of many passive investment products.
“We are participating in that process,” Saylor told Reuters when asked about MSCI, adding that he was “not sure” about the accuracy of JPMorgan’s estimates.
The strategy, which has 650,000 BTC on its balance sheet, has come under fire in recent weeks after the price of the leading cryptocurrency plummeted from an all-time high of over $120,000 to just $82,000.
While the price of bitcoin has recovered to $93,000, still about 26% below the record, critics argue that Strategy’s issuance of debt and equity to accumulate BTC is not sustainable. The company’s shares have fallen 37% this year.
UPDATE (December 3, 10:40 UTC): Add removed attribution to title.
