According to information spread by the international financial media, Strategy Inc – the company of Michael Saylor, famous for his big bet on Bitcoin – is at risk of being removed from major stock indexes such as MSCI USA and Nasdaq 100. What has attracted the market’s attention is the amount of passive Capital coming from ETFs and Investment Vehicles linked to these two indexes, which are holding nearly $9 billion in stocks related to Strategy Inc. If the removal occurs, that passive Capital flow could be withdrawn or restructured, directly affecting stock prices and related market fluctuations.
MSCI is reviewing its criteria for companies with large digital asset holdings, according to people familiar with the matter. Institutional investors have complained that companies with large asset values based on Bitcoin or other cryptocurrencies no longer represent the true nature of traditional manufacturing and service businesses. Some have argued that companies like Strategy Inc. are operating more like large-scale Bitcoin funds than like technology or software companies, raising debate about whether keeping them in the benchmark index still reflects the market structure.
The final decision is expected to be announced on January 15, 2025. This is a timeframe that the market is closely watching, as any changes related to MSCI or Nasdaq 100 are likely to have a strong impact on ETFs that track the index, leading to price fluctuations in the US market as well as the cryptocurrency market.
Partly due to this news, the cryptocurrency market continued to experience a strong day of turmoil as red covered most major assets. In the past 24 hours, the total market Capital has decreased by about 4.5%, falling back to approximately $3.05 trillion. Bitcoin - the leading currency - slipped to the $87,000 region after many unsuccessful attempts to maintain its price, while Ethereum was also pulled down to around $2,800, reflecting the cautious sentiment spreading across the market. Most altcoins plunged, from large Capital Token to "hot" projects in the Solana, Base and BNB Chain ecosystems.
