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Bitcoin News Update: Is MicroStrategy Considered a Technology Company or a Bitcoin Investment Vehicle? Saylor Responds Before MSCI Decision

Bitcoin News Update: Is MicroStrategy Considered a Technology Company or a Bitcoin Investment Vehicle? Saylor Responds Before MSCI Decision

Bitget-RWA2025/11/21 16:44
By:Bitget-RWA

- MicroStrategy CEO Michael Saylor defends the firm's Bitcoin-centric model amid MSCI index exclusion risks, emphasizing its $500M software business and active financial engineering. - JPMorgan warns delisting could trigger $8.8B passive outflows, citing 57% of Strategy's $59B market cap tied to index-tracking vehicles vulnerable to mechanical selling. - MSCI's review of crypto-heavy firms (holding >50% digital assets) threatens to reclassify Strategy as an investment fund, increasing borrowing costs and d

Michael Saylor, CEO of MicroStrategy (MSTR), has strongly defended the company’s approach as worries mount that it could be removed from prominent stock indices such as the

USA and the Nasdaq 100. recently cautioned that such a removal might lead to passive outflows of up to $8.8 billion, which could have a major effect on the company’s market value and liquidity. Saylor dismissed these concerns, stressing that is “a publicly listed operating company with a $500 million software division and a distinctive treasury approach that utilizes as productive capital,” rather than simply acting as a passive investment fund .

The possible removal is linked to MSCI’s ongoing evaluation of whether firms with substantial digital asset holdings—specifically those where such assets make up more than half of total assets—should continue to be included in standard equity benchmarks

. Bitcoin dominates Strategy’s balance sheet, with the company worth nearly $7.7 billion. JPMorgan’s research highlighted that about $9 billion of Strategy’s $59 billion market cap is held by passive index-tracking funds, if it is dropped from the indices. Shares in the company have already declined by more than 40% in the last six months, a steeper drop than Bitcoin’s 30% fall in the same timeframe .

Saylor pointed to the company’s proactive financial strategies,

of Bitcoin-backed digital credit securities this year, totaling over $7.7 billion in notional value. He cited products like Stretch ($STRC), which delivers variable monthly USD returns to investors, as proof of Strategy’s operational sophistication. “Funds and trusts simply hold assets. Holding companies retain investments. We design, structure, issue, and manage,” Saylor posted on X .

Bitcoin News Update: Is MicroStrategy Considered a Technology Company or a Bitcoin Investment Vehicle? Saylor Responds Before MSCI Decision image 0

The MSCI consultation, which is set to close on January 15, 2026, has already affected investor sentiment.

in October 2025 after the review was announced, with some market watchers blaming the decline on expectations about the index changes. that more investors are now viewing companies with large digital asset holdings as similar to investment funds, which are not eligible for index inclusion. This reclassification could increase Strategy’s financing costs, to 15% amid falling share prices.

Despite these challenges, Saylor remains optimistic about Bitcoin,

to build a Bitcoin treasury worth $1 trillion. He aims to use the asset to launch over-collateralized credit products that could offer yields 2–4% above conventional debt, potentially transforming global credit markets. However, that being dropped from indices could undermine this approach by reducing liquidity and raising borrowing costs.

The result of MSCI’s review will have significant consequences for the broader crypto industry. Strategy’s presence in major indices has long served as a gateway for institutional capital to enter Bitcoin,

through passive investment vehicles. a shift in how traditional markets view companies with large digital asset reserves, potentially affecting other firms with substantial crypto holdings.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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