Strategy Braces for $2.8B Liquidation Shock as MSCI Changes Index Rules

Strategy and other Bitcoin treasury companies are facing MSCI global index delisting risk following the development of new eligibility criteria. MSCI may deem it a non-operating company based on three indicators, including that most of its revenue is dependent on the underlying asset rather than operational income. JPMorgan estimates that Strategy faces $2.8B liquidation risk, which could extend to up to $11.6 billion if the downlisting spreads out. The world’s leading publicly traded Bitcoin treasury company, Strategy, is among a list of companies of its kind that face potential removal from Morgan Stanley Capital International (MSCI) global indexes.

Source: Coinpedia