Strategy Faces Potential Index Exclusion Crisis

A critical decision looms for the company formerly known as MicroStrategy, now confronting what may represent the most significant challenge since its transformation into a Bitcoin-focused treasury vehicle. Market strategists at JPMorgan have issued warnings about potential removal from major stock indices—a development that could trigger devastating consequences for investors. The pivotal determination arrives on January 15th, with substantial capital flows hanging in the balance.

Strategy’s investment approach previously relied on a straightforward yet effective mechanism: raise capital, purchase Bitcoin, anticipate appreciation, then issue additional shares or bonds to repeat the cycle. This self-reinforcing system, often described as a “Bitcoin flywheel,” functioned successfully while the company’s shares Read more...