In response to recent reports suggesting that Strategy may face significant passive outflows should MSCI exclude the company from major equity indices, Michael Saylor asserted the company’s operational stance. He clarified that Strategy is “not a fund, not a trust, and not a holding company,” but rather a publicly traded operating company with a software business valued at $500 million, paired with a distinctive treasury strategy that utilizes Bitcoin as productive capital.

Saylor emphasized the firm’s recent initiatives, which include five public offerings of digital credit securities—$STRK, $STRF, $STRD, $STRC, and $STRE—collectively representing over $7.7 billion in notional value.

He also mentioned Stretch ($STRC), a Bitcoin-backed credit instrument designed to provide variable monthly USD yields for both institutional and retail investors.

According to Saylor, “Funds and trusts passively hold assets. Holding companies sit on investments. We create, structure, issue, and operate. No passive vehicle or holding company could do what we’re doing.”

Saylor characterized Strategy as an innovative new enterprise: a Bitcoin-backed structured finance company that is making strides in both capital markets and software development.

He further noted that index classification does not dictate the company’s identity. “Our strategy is long-term, our conviction in Bitcoin is unwavering, and our mission remains unchanged: to build the world’s first digital monetary institution on a foundation of sound money and financial innovation.”

Potential Exclusion from Nasdaq 100

This statement comes as analysts from JPMorgan have cautioned that MSCI’s potential decision to exclude Strategy from significant indices could result in passive outflows estimated at $2.8 billion, which could escalate to $8.8 billion if additional index providers follow suit.

Currently, Strategy’s market capitalization is approximately $59 billion, with nearly $9 billion allocated in passive index-tracking vehicles. Analysts have expressed concerns that any exclusion might amplify selling pressure, widen funding spreads, and diminish trading liquidity.

Strategy’s presence in indices such as the Nasdaq 100, MSCI USA, and MSCI World has historically facilitated the integration of Bitcoin trades into mainstream portfolios. However, MSCI is reportedly reassessing the eligibility of companies with substantial digital-asset holdings for traditional equity benchmarks.

Market participants increasingly perceive companies heavily invested in digital assets as akin to investment funds, which are typically ineligible for inclusion in indices.

Despite the prevailing Bitcoin volatility and apprehensions regarding potential outflows, the company remains steadfast in its long-term objective of establishing a Bitcoin-backed financial enterprise, dedicating efforts to the creation of innovative financial products and a digitally native monetary institution.

On October 10, Bitcoin and the broader cryptocurrency market experienced a significant downturn. While some attribute this drop to geopolitical tensions, notably former President Trump’s tariff threats against China, others suggest the decline was triggered by MSCI’s announcement regarding the reevaluation of companies like MSTR holding crypto as their core business. This led to speculation that ‘smart money’ responded preemptively, culminating in the market’s sharp decline, with attention now fixed on MSCI’s upcoming decision on January 15, 2026.

A Vision for Trillions in Bitcoin

He aspires to accumulate $1 trillion in Bitcoin while achieving annual growth of 20% to 30%, utilizing long-term appreciation as a means to create a substantial store of digital collateral.

From this foundation, Saylor plans to issue Bitcoin-backed credit at yields significantly exceeding those of traditional fiat systems, potentially 2% to 4% higher than corporate or sovereign debt, thereby offering safer, over-collateralized alternatives.

This strategy is anticipated to reinvigorate credit markets, equity indices, and corporate balance sheets, while fostering the development of new financial products, including higher-yield savings accounts, money market funds, and insurance services denominated in Bitcoin.

As of the current writing, Bitcoin is facing intense sell pressure, with its price approaching the $80,000 threshold. The cryptocurrency recently reached an all-time high above $126,000 just six weeks prior.

Strategy’s stock, $MSTR, is trading at $167.95, down over 5% on the day and approximately 15% over the past five trading sessions.

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