**Reuters: MicroStrategy May Be Dropped From MSCI, Major Indices; Could Lose $9B in Stock Demand** December 20 – MicroStrategy Inc (MSTR.O), the U.S. firm with heavy Bitcoin investments, could soon be removed from MSCI’s global benchmarks and other major stock indices, per Reuters. Analysts warn the move may erase up to $9 billion in stock demand for the company and dent the crypto-related sector’s overall appeal. In October, MSCI proposed excluding companies where digital asset holdings make up 50% or more of total assets, responding to client inquiries. The index provider argues such firms resemble investment funds — entities not included in its core index system. But crypto-linked companies push back, saying they are operational businesses focused on innovative product development, and label MSCI’s proposal unfair discrimination against the industry. Dozens of firms have added crypto tokens to their balance sheets in hopes of future gains, yet questions are mounting about the sustainability of these business models. MSCI is running a public consultation and will announce its final decision on January 15. Analysts note other index providers could follow suit if MSCI cuts ties with digital asset-heavy companies.
