Strategy Faces Index Exclusion Risk Over Bitcoin Holdings

Strategy Inc., the technology firm known for its aggressive Bitcoin accumulation strategy, faces potential exclusion from major stock indexes like MSCI USA and the Nasdaq 100, a decision that could trigger billions in forced selling by passive investment funds. The review, centered on companies with digital asset holdings exceeding half their total assets, targets Strategy's balance sheet and is expected to conclude by January 15, 2026.

According to recent disclosures, index provider MSCI is consulting on updated rules to reclassify or remove firms whose treasuries are dominated by cryptocurrencies, viewing them as more akin to investment funds than traditional operating companies. Strategy, which held approximately 649,870 Bitcoin as of November 16, 2025, meets this threshold, with the digital assets comprising the bulk of its value. The company recently added 8,178 Bitcoin to its reserves for about $836 million, at an average price of roughly $102,171 per coin, further entrenching its exposure to cryptocurrency price swings.

JPMorgan analysts estimated that exclusion from MSCI indexes alone could force passive funds to sell nearly $3 billion worth of Strategy shares. If other...