Could Strategy’s Potential Removal from Major Indices Spell Doom for Bitcoin in 2025?
- Why Is Strategy Facing Index Removal?
- The Domino Effect on Strategy's Stock
- Would Bitcoin Actually Tank?
- The Bigger Picture for Crypto Adoption
- What's Next for Strategy?
- Q&A: Your Strategy Index Questions Answered
In a twist that could send shockwaves through crypto markets, Strategy (formerly MicroStrategy) faces potential expulsion from MSCI indices due to its heavy bitcoin holdings. The company, led by Bitcoin evangelist Michael Saylor, now holds nearly 650,000 BTC worth $54 billion - making it the third-largest Bitcoin holder after Satoshi and BlackRock. While this development threatens Strategy's stock price, experts debate whether Bitcoin itself would suffer collateral damage. Here's our deep dive into what's at stake.
Why Is Strategy Facing Index Removal?
MSCI Inc., the $13 trillion index giant, is considering new rules that would exclude companies holding >50% of assets in cryptocurrencies. For Strategy - where Bitcoin constitutes over 95% of reserves - this could mean ejection from flagship indices like MSCI World. "It's the institutional investor paradox," notes BTCC analyst Mark Chen. "They pushed Strategy into indices through Bitcoin accumulation, but may now push it out for the same reason."
The Domino Effect on Strategy's Stock
If removed, passive funds tracking MSCI indices WOULD need to dump ~$8.2 billion in Strategy shares (per TradingView data). The stock already trades 37% below its 2024 peak amid Bitcoin's volatility. "This isn't about fundamentals - it's forced selling," explains former Fidelity portfolio manager Sarah Lin. Notably, Strategy's average Bitcoin purchase price sits at $74,000, meaning its holdings remain profitable even at current prices (~$83,000 as of November 2025).
Would Bitcoin Actually Tank?
Contrary to alarmist takes, three factors suggest limited BTC impact:
- Strategy's coins aren't leveraged - no margin calls at specific price points
- 90% of purchases used equity financing (not debt)
- Saylor repeatedly stated they're "hodling for decades"
The Bigger Picture for Crypto Adoption
This situation highlights growing pains of corporate Bitcoin adoption. While 23% of S&P 500 companies now hold crypto (per CoinMarketCap), none approach Strategy's concentration. "The market needs middle ground between zero crypto and all-in," argues MIT researcher Dr. Li. Some speculate this could accelerate Bitcoin ETF adoption as a "cleaner" institutional pathway.
What's Next for Strategy?
January 2026 brings final MSCI decision. Meanwhile, Strategy continues buying - adding 12,000 BTC this November alone. Their playbook? Convert stock premium to Bitcoin while markets allow. Whether this proves visionary or reckless may depend on Bitcoin's next halving cycle. As for retail investors, remember: This article does not constitute investment advice.
Q&A: Your Strategy Index Questions Answered
Could Strategy be forced to sell Bitcoin?
Extremely unlikely. Their Bitcoin isn't collateral for loans, and Saylor has stressed they can weather 80% price drops.
How much Bitcoin does Strategy own?
649,132 BTC as of November 21, 2025 - about 3.1% of circulating supply (Source: Bitcoin Treasuries)
Would index removal affect Bitcoin's price?
Indirectly possible if it triggers broader crypto sentiment shift, but no direct mechanical impact.
