Analysts at JPMorgan are warning that Michael Saylor’s MicroStrategy could face a financial reckoning, potentially wiping out over 20% of its market capitalization. The firm risks losing $2.8 billion if it is removed from major passive indices managed by MSCI, with an additional $8.8 billion at risk if other index providers follow suit.

The concern stems from a proposal by MSCI, a leading index provider, to exclude companies that hold 50% or more of their total assets in cryptocurrencies. MSCI is currently consulting on the potential rule change and is expected to announce its decision on January 15, 2026.

The Importance of Index Inclusion

Many retail and institutional investors gain market exposure through passive benchmark indices rather than by picking individual stocks. Inclusion in these indices provides a steady stream of capital as funds automatically purchase a company’s shares to track the index. Consequently, being delisted can be damaging for large companies by cutting off this significant source of investment.

Beyond the MSCI indices, MicroStrategy is also part of the Nasdaq 100 and the S&P 600. However, despite meeting the technical requirements, the company has not been included in the more widely followed S&P 500 index.

Saylor Remains Unfazed Amid Delisting Concerns

Despite Bitcoin (BTC) sliding nearly 11% this past week to around $91,700, Saylor told Fox Business it was business as usual, stating that volatility helps remove less committed investors from the market. He emphasized that MicroStrategy is engineered to withstand drawdowns of 80% to 90% and remains “pretty indestructible.”

Meanwhile, the company continues its accumulation strategy and now holds 649,870 BTC, valued at approximately $59.5 billion. Saylor dismissed rumors that the company had sold any Bitcoin, revealing a recent purchase of 8,178 BTC for $835 million. With an average cost basis of $74,443 per coin, the company’s holdings remain comfortably profitable. This strategy continues to attract institutional capital, as Canada’s CPP pension fund and Florida’s pension fund recently disclosed stakes of $80 million and $47 million in MicroStrategy, respectively.

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