Quick Takeaways:
- Michael Saylor says possible MSCI index removals will not impact Strategy’s Bitcoin strategy.
- Strategy shares have dropped 43% in a month, falling below Bitcoin treasury value.
- The firm still holds $55B in Bitcoin and remains committed to its long-term BTC plan.
Saylor Downplays MSCI Delisting Risk
Strategy co-founder Michael Saylor dismissed fears that the company may be removed from major stock indices next year.
His comments followed a JPMorgan report that highlighted MSCI’s review of firms that accumulate Bitcoin through capital-raising.
Saylor argued that Strategy operates as a real company, not as a crypto investment vehicle.
Strategy Insists It Is Not a Fund
In a post on X, Saylor said Strategy is “not a fund, not a trust, and not a holding company.”
He emphasized its $500 million software business and its treasury model that treats Bitcoin as productive capital.
The statement aimed to distance Strategy from firms that might fall under MSCI’s revised classification rules.
Share Price Falls Below BTC Holdings Value
Strategy’s stock price has plunged 43% in the past month.
The decline outpaced Bitcoin’s pullback from record highs, according to Yahoo Finance.
The company’s market cap has fallen below the value of its Bitcoin holdings, creating new challenges for raising capital.
Historically, Strategy issued common shares to grow its Bitcoin reserves.
But with less favorable market conditions, the firm has shifted toward preferred shares with dividend features.
MSCI plans to finalize its classification decision on January 15.
MSCI Reviews Firms With Heavy Crypto Treasuries
MSCI said it may reclassify companies that use fundraising primarily to buy digital assets.
It is also reviewing firms whose crypto holdings exceed 50% of their assets.
That description aligns with Strategy, the world’s largest corporate holder of Bitcoin.
Still, Saylor argued that index decisions will not impact the company’s long-term strategy.
He highlighted new products released this year as evidence that Strategy is building a “Bitcoin-backed structured finance company.”
Bitcoin Commitment Remains Firm
Strategy’s Bitcoin holdings were valued at $55 billion on Friday.
The company’s stack peaked at almost $80 billion in early October, according to Bitcoin Treasuries.
Despite market volatility, Saylor said “index classification doesn’t define” the company’s mission. Strategy joined the Nasdaq-100 late last year, which analysts said would trigger over $2 billion in net buying.
The firm later qualified for the S&P 500, but was not selected.
Meanwhile, prediction markets show that only 6% of traders expect Strategy to sell any Bitcoin this year.