Strategy founder Michael Saylor defended the company’s business model, while JPMorgan analysts warned that losing index status could lead to significant outflows and harm the company’s reputation and funding ability.
Bitcoin advocates and supporters of Strategy (formerly MicroStrategy) are calling for a boycott of JP Morgan after the bank highlighted a proposed index rule that could hit crypto-exposed firms.
The reaction follows a JP Morgan research note flagging that index provider MSCI is likely to exclude “crypto treasury” companies from its benchmarks starting January 2026. The change would apply to firms holding 50% or more of their balance sheet in digital assets.
“Everyone should pull money and shares out of JPMorgan products if you support Strategy and Bitcoin”, one user from the “Irresponsibly Long MSTR” community shared. Apparently Grant Cardone is also quite mad about it, as the real estate investor said he “pulled $20M from Chase” and that he’s suing them for “credit card malfeasance”.
Strategy, which joined the Nasdaq 100 in December 2024, has been a major beneficiary of index inclusion and related passive inflows. Responding to the MSCI proposal, founder Michael Saylor said on Friday that “Strategy is not a fund, not a trust, and not a holding company.”
Backlash Grows Against JPMorgan over MSCI Decision
As Crypto News Australia reported, JPMorgan said Strategy’s earlier premium over its Bitcoin holdings has mostly disappeared. The latest decline, it argued, reflects concern that index provider MSCI may remove the company from key benchmarks when it issues a decision on Jan. 15.
Strategy is currently included in the Nasdaq 100, MSCI USA and MSCI World. Of its roughly US$59 billion (AU$90.86 billion) market value, about US$9 billion (AU$13.86 billion) sits in passive funds and ETFs that track these indexes, analysts led by Nikolaos Panigirtzoglou said.
The analysts added that losing index status would hurt Strategy’s reputation and might make it harder to raise money in equity and debt markets. Reduced index-linked trading could also weaken liquidity and make the stock less attractive to large investors.
They noted that Strategy’s combined value across equity, debt and preferred shares relative to its Bitcoin holdings is already at the lowest point since the pandemic. A negative MSCI ruling, they warned, could push that ratio close to 1, tying the company’s valuation almost entirely to the size of its Bitcoin position.
Read more on Crypto News Australia
