Strategy (MSTR), the largest public holder of bitcoin is in negotiations with the index provider MSCI about a possible decision to remove the company from major equity benchmarks.
A decision is expected by January 15, Reuters reported. The outcome could have significant implications 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” of the accuracy of JPMorgan’s estimates.
Strategy, which has 650,000 BTC on its balance sheet, has been under fire over the past few weeks after the price of the leading cryptocurrency plummeted from an all-time high above $120,000 to as low as $82,000.
While the bitcoin price has risen to $93,000, still about 26% below the record, critics argue that Strategy’s debt and equity issuance to accumulate BTC is not sustainable. The company’s shares have fallen 37% this year.
UPDATE (December 3 at 10:40 UTC): Adds dropped attribution to the header.
