Michael Saylor’s Strategy is in danger of losing its place on a number of leading equity indices, including the Nasdaq 100. This comes as the crypto market crash continues to worsen day after day.
Strategy’s Nasdaq 100 Inclusion Under Review
According to Bloomberg, both MSCI and Nasdaq are reviewing whether the firm still qualifies for inclusion in their benchmarks. The metric is a crucial source of visibility and liquidity among companies connected to equity markets.
MSCI is consulting investors on whether companies holding more than half of their assets in digital assets should remain in major indices. According to some institutions, such companies are more like investment vehicles rather than businesses themselves.
This has led to debate over whether the company still meets the criteria for broad-market benchmarks. A final decision is expected by January 15.
This would lead to an outflow of as much as $2.8 billion from funds tracking the index if MSCI were to remove the stock from it. The impact could extend into the billions of dollars if one adds possible moves by other providers. Currently, passive funds tied to the firm represent close to $9 billion of market exposure.
Analysts at JPMorgan warned that exclusion from top indices would weaken the company’s appeal. This includes liquidity and funding access. Their removal from these benchmarks tends to impact investor sentiment and longer-term demand.
The shift comes after past optimism. Recently, experts shared that Strategy might gain entry into the S&P 500. They shared its market cap and trading liquidity already meet eligibility thresholds.
Strategy Under Pressure as Crypto Slide Deepens
The market decline has also taken a toll on the MSTR price. Since last November’s record high, the stock has plunged more than 60%. It basically erased a premium that once made Strategy a favorite among investors.
Source: Bloomberg
That downturn has affected the firm’s newer financing instruments, too. The prices of its perpetual preferred shares have fallen sharply. A euro-denominated preferred share offering launched earlier in the month has also fallen below its discounted issue price.
Meanwhile, Bitcoin has dropped over 32% from its highs in October. Its total crypto cap has lost more than $1 trillion. The company’s mNAV has gone down to just above. This means that the market no longer awards the valuation premium that the company once enjoyed.
However, Saylor insists his company is structurally positioned to handle such extreme volatility. He has said time and again that his firm was built to handle an 80–90% drawdown in Bitcoin without ever facing existential risk.
Michael Saylor’s Strategy Faces Removal From Nasdaq 100 Amid Crypto Market Crash
