Strategy (MSTR), the largest public holder of bitcoin is in talks with index provider MSCI over a possible move to remove the company from major equity benchmarks.
A decision is expected by January 15. Reuters reported. The outcome could have significant consequences for the Tysons Corner, Virginia-based company.
JPMorgan analysts estimated last month that a cut could lead to capital outflows of up to $8.8 billion if other index providers followed MSCI’s lead. Indeed, Strategy’s inclusion in indices such as MSCI USA and MSCI World makes it part of many passive investment products.
“We are committed to that process,” Saylor told Reuters when asked about MSCI, adding that he “wasn’t sure” about the accuracy of JPMorgan’s estimates.
Strategy, which has 650,000 BTC on its balance sheet, has been under fire in recent weeks, after the price of the leading cryptocurrency fell from an all-time high of over $120,000 to a low of $82,000.
While the price of Bitcoin has returned to $93,000, still about 26% below the all-time high, critics say Strategy’s issuance of debt and equity to accumulate BTC is unsustainable. The company’s shares have fallen 37% this year.
UPDATE (December 3, 10:40 UTC): Adds a removed attribution to the title.
