MicroStrategy Faces Potential Removal from Key Stock Index

The world's largest publicly traded corporate holder of Bitcoin is now confronting a significant threat to its market position. Index provider MSCI is considering ejecting MicroStrategy from its global equity benchmarks, a move that analysts warn could trigger forced selling worth billions of dollars. In response, the company has launched a vigorous defense, issuing a sharply worded letter to contest the potential exclusion.

Despite the looming question over its index membership, MicroStrategy continues its aggressive cryptocurrency acquisition strategy without pause. In just the first week of December, the firm purchased 10,624 Bitcoin for approximately $962.7 million, marking its largest weekly buy since July 2025.

The company’s total holdings now stand at 660,624 Bitcoin. These were acquired for an aggregate purchase price of roughly $49.35 billion, reflecting an average cost of $74,696 per coin. With Bitcoin currently trading around $91,000, the market value of this crypto treasury is estimated at about $60 billion.

A Forceful Challenge to MSCI’s Proposal

On December 10, Executive Chairman Michael Saylor and President Phong Le dispatched a 12-page communiqué to the MSCI Equity Index Committee. The letter’s tone was notably combative. In it, the executives labeled MSCI’s proposal to exclude companies holding digital assets above a certain threshold as “discriminatory, arbitrary, and unworkable.”

Central to MicroStrategy’s argument is the assertion that the proposed 50% limit for digital assets is illogical. The company contends it operates as a conventional business enterprise that actively utilizes Bitcoin to generate returns, not as a passive investment fund. It further points out that other industries with similarly high concentrations in single asset classes—such as oil, real estate, or timber—face no analogous exclusionary rules.

Should investors sell immediately? Or is it worth buying Strategy?

The core points of their defense include:
* Operating structure as a traditional going-concern business
* Absence of fund-like obligations or organizational frameworks
* No classification as an investment fund under current law
* No fund-like tax treatment for its shareholders
* A long-established history as a software company

Billions in Forced Sales Loom as a Real Risk

The financial implications of an exclusion are substantial. Analysts at JPMorgan estimate that removal from MSCI indexes could precipitate forced selling of around $2.8 billion in MicroStrategy shares. Should other major index providers enact similar rules, this figure could balloon to between $8 and $9 billion. Passive funds that track MSCI benchmarks would be obligated to sell the stock automatically.

The situation is compounded by the company’s capital structure. MicroStrategy has approximately $8.2 billion in convertible notes outstanding, with an average maturity of four and a half years. While Saylor has emphasized that the company would remain “overcollateralized” even following an 80% crash in Bitcoin’s price, shareholder dilution from equity raises has exceeded 20% since the start of the year.

Deadline for a Landmark Decision

MSCI’s consultation period on this matter runs until December 31, 2025. A final verdict is anticipated by January 15, in time for the index’s scheduled rebalancing in February. The outcome will carry significant implications far beyond MicroStrategy alone. Since 2021, the number of companies holding Bitcoin on their balance sheets has surged from fewer than ten to approximately 190 today, making MSCI’s decision a potential precedent for the entire corporate crypto sector.