Strategy Reported at Risk of Nasdaq 100 and MSCI USA Removal as Asset Mix Draws Scrutiny

MSCI and Nasdaq are reviewing Strategy for removal as its digital asset holdings exceed key limits.

Exclusion could trigger up to $2.8B in forced selling while passive exposure stands near $9B.

Strategy’s stock has dropped over 60% as Bitcoin weakness pushes its valuation near mNAV levels.

Strategy faces new pressure as MSCI and Nasdaq review its eligibility for their major indices. Both providers are assessing whether companies holding large digital asset positions still meet their benchmark rules. The review comes as Strategy moves through a sharp decline in stock performance and market strength.

Index Providers Review Strategy’s Eligibility

MSCI is consulting investors on a proposal that would prohibit companies whose digital asset positions make up more than half of total assets. Some institutions told MSCI these firms operate more like investment vehicles than traditional businesses. A final decision is expected by January 15

According to estimates cited by Bloomberg, removal from the MSCI USA Index could trigger forced selling of as much as $2.8 billion. Nasdaq is also reviewing the company as its market value and stability have weakened during the recent downturn. Strategy remains listed on Nasdaq, yet it may lose its place in the Nasdaq 100. JPMorgan analysts said that exclusion “would be viewed negatively by market participants,” noting pressure on liquidity and demand

Passive exposure tied to Strategy is currently near $9 billion. The review arrives as Bitcoin trades far below recent highs. Strategy’s mNAV sits just above 1.1, showing the stock trades close to the value of its Bitcoin holdings. The company purchased 8,178 BTC earlier this week, raising total holdings to 649,870 BTC.

Market Pressure and Investor Reaction

Strategy’s stock has fallen more than 60% from last November’s peak. The decline removed the valuation premium that once followed each large Bitcoin purchase. Its newer financing tools have also traded lower during the pullback. A euro-denominated preferred share offering recently moved below its issue price.

Bitcoin has dropped more than 30% from the October peak, and this reduced the strength of Strategy’s feedback loop. Earlier rallies allowed the firm to raise capital and expand its holdings, yet the same cycle now moves in reverse

Strategy’s size has fallen below the levels needed to remain in the Nasdaq 100 and MSCI USA indices. Investors now wait for decisions from index providers as Strategy navigates weaker conditions across both equity and digital asset markets.

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