Bitcoin News Update: MSCI Faces Index Challenge as Saylor’s Bitcoin Strategy Confronts $8.8B Withdrawal Threat

Michael Saylor, the chairman of

(MSTR), has reaffirmed his commitment to the company’s Bitcoin-focused approach, even as worries grow about a possible removal from indices—a change that could result in billions of dollars leaving passive investment funds. Through several posts on X, Saylor stressed that Strategy is a “publicly listed operating business” with a $500 million software division and a digital credit initiative backed by Bitcoin, pushing back against claims that the company acts as a passive holding entity. “Funds and trusts simply hold assets. We design, develop, launch, and manage,” he declared, highlighting the company’s pioneering role in Bitcoin-backed structured finance .

The debate arises from MSCI’s ongoing evaluation of whether firms with significant digital asset reserves should continue to be included in standard equity indices.

that if Strategy is dropped from major indices such as the Nasdaq 100, MSCI USA, and MSCI World, it could prompt $2.8 billion in withdrawals from MSCI alone, and up to $8.8 billion if other index providers follow. Roughly $9 billion of Strategy’s $59 billion market value is currently held by funds that track these indices, as reported. that such an exclusion would likely make raising capital more expensive, decrease liquidity, and undermine investor trust.

Nevertheless, Saylor remains steadfast. He pointed to the company’s recent launch of $7.7 billion in Bitcoin-backed digital credit securities, including Stretch ($STRC), a variable-yield product for both institutional and retail clients

. “Our approach is for the long haul, our belief in is rock solid, and our purpose is unchanged,” he said, reaffirming his goal to build a trillion-dollar Bitcoin balance sheet that could transform the global financial landscape . This vision involves using Bitcoin’s growth to offer higher-yield alternatives to conventional debt, potentially breathing new life into credit markets and introducing innovative financial products.

The stakes have increased amid heightened market turbulence.

more than 30% since its October high, now trading close to $80,000. The ratio of the company’s market capitalization to its Bitcoin holdings has dropped to 1.1, the lowest point since the pandemic began, and its high-yield preferred shares are now yielding 11.5%, signaling reduced investor interest . the recent share price drop—down over 60% from its November 2024 peak—more to fears of index removal than to Bitcoin’s price movement alone.

MSCI’s upcoming decision, expected by January 15, 2026, has injected uncertainty throughout the sector. The proposed rule would bar companies where digital assets make up at least half of their total assets

. While MSCI has not commented on possible changes to its methodology, markets such as Indonesia have already hinted at adjustments to float calculations, intensifying concerns about index restructuring .

Despite these challenges, Saylor’s team continues to grow its Bitcoin reserves,

to its holdings. The premium of the company’s stock over its Bitcoin net asset value (mNAV) has dropped from 2.7 to 0.9, indicating a move from speculative enthusiasm to a more realistic valuation . that being removed from indices could speed up a “mechanical unwinding” of Strategy’s narrative-driven model, putting further pressure on a sector already facing broad economic challenges.