Bitcoin Updates: Saylor Questions MSCI's New Classification, Stands by MSTR's Main Business Model

Michael Saylor, the head of

(MSTR), has downplayed worries that the firm's addition to major stock indices might lead to significant withdrawals if decides to remove it from its benchmarks. Saylor pointed out that operates as a business with a $500 million software segment and a $7.7 billion digital credit initiative backed by Bitcoin, . His remarks follow a warning from JPMorgan that from its indices, it could prompt $2.8 billion in outflows, potentially reaching $8.8 billion if other index providers follow.

The index provider is currently assessing whether firms with more than half their assets in digital currencies should continue to be included in global equity indices. MSTR, which owns 649,870

at an average purchase price of $74,433 per coin, faces the possibility of being reclassified . According to JPMorgan, $9 billion of MSTR's $59 billion market valuation is linked to passive index funds, if it is removed. Such an event would likely , and hinder MSTR's ability to secure new capital.

The recent decline in Bitcoin's price has heightened these concerns. After falling to $82,605 on November 21, Bitcoin has dropped over 30% from its October high,

from their 2024 peak. The company's premium over its net Bitcoin assets—which once exceeded 2.7 times—has now shrunk to nearly 1.1, . Saylor's ambition to create a $1 trillion Bitcoin reserve and use it to launch high-yield credit products is now facing obstacles, as broader economic pressures and diminishing expectations for Fed rate cuts intensify market anxiety .

Despite the turbulence, Saylor stands firm, describing MSTR as a "Bitcoin-backed structured finance company"

. He pointed to the company's recent $7.7 billion issuance of digital credit securities, including variable-yield products like Stretch ($STRC), as evidence of its operational sophistication . Still, experts argue that index status is vital for institutional credibility. MSTR's inclusion in the Nasdaq 100 and MSCI World indices has historically into mainstream investment portfolios. Being dropped would not only reduce its market value but also about companies heavily invested in crypto.

The market's attention is now on MSCI's verdict set for January 15, 2026.

it could trigger a "mechanical unwinding" of its business model, with passive funds forced to sell and higher borrowing costs for Saylor's Bitcoin acquisitions. Meanwhile, if Bitcoin approaches $75,000—close to MSTR's average buy-in price—it could lead to more unrealized losses, though this is not the main reason for possible exclusion .

As the crypto industry prepares for a potential "crypto winter," MSTR's situation highlights the vulnerability of narrative-driven valuations in a risk-averse market. With up to $8.8 billion in possible outflows and Bitcoin's technical outlook weakening, the next few months will challenge the durability of a company built on the concept of digital gold.