MSTR to be "removed" from the index, JPMorgan research report "caught in the crossfire," crypto community calls for "boycott"

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Index compiler giant MSCI has proposed removing companies holding substantial crypto assets from its Global Investable Market Indexes, sparking strong opposition from the crypto community. MicroStrategy, which holds a large amount of Bitcoin, is the primary target, while JPMorgan, which published a related research report, has unexpectedly become a target of resistance.

MSCI recently issued a statement proposing to exclude "digital asset treasury companies" that hold more than 50% of their balance sheets in cryptocurrencies from its indexes. This policy change is expected to take effect in January 2026. JPMorgan shared this update in a research report and was immediately met with fierce criticism from the Bitcoin community, with several crypto influencers calling for a "boycott" of the financial services giant.

JPMorgan analyst Nikolaos Panigirtzoglou's team warned that if MicroStrategy is eventually removed, its valuation will face "considerable pressure." Analysts estimate that of MicroStrategy's roughly $59 billion market cap, about $2.8 billion is held by funds explicitly tracking MSCI indexes. Once the removal decision takes effect, it could trigger as much as $2.8 billion in forced selling.

This index adjustment could spark a chain reaction. Removed crypto treasury companies will lose capital inflows from passive funds, and related funds and asset management firms will be forced to automatically sell those companies' stocks, which could negatively impact the cryptocurrency market.

Crypto Community Launches Boycott Wave

JPMorgan became the focal point of anger in the crypto community for publishing the research report on MSCI's index adjustment.

Real estate investor and Bitcoin advocate Grant Cardone said on social media: "I just withdrew $20 million from Chase Bank and sued them for credit card misconduct." Bitcoin advocate Max Keiser called out: "Crush JPMorgan, buy MicroStrategy and Bitcoin."

This online boycott movement quickly escalated, highlighting the crypto community's sensitivities towards interventions from traditional financial institutions. Although JPMorgan was simply relaying MSCI's policy proposal, it bore the brunt of the collective boycott as the messenger.

MicroStrategy Founder Responds to Policy Change

MicroStrategy founder Michael Saylor broke his silence last Friday to respond to MSCI's proposed policy change.

He emphasized: "MicroStrategy is not a fund, not a trust, nor a holding company. Funds and trusts passively hold assets, holding companies keep investments, but we create, build, issue, and operate."

Saylor defined MicroStrategy as a "Bitcoin-backed structural financial company," seeking to distinguish itself from entities that passively hold assets. MicroStrategy entered the Nasdaq-100 index in December 2024, which includes the 100 largest tech-traded companies by market cap. Inclusion in the index brought MicroStrategy passive capital inflows from funds and investors holding the Nasdaq-100.

Market Impact of Index Removal

Based on MSCI's proposed new standards, any treasury company whose balance sheet has 50% or more in crypto will lose index eligibility. Such companies face two choices: either reduce crypto holdings below the threshold to retain index qualification, or lose passive capital inflows from market indexes.

JPMorgan analysts noted that this speculation may be one reason for MicroStrategy's recent share price pressure. Of the company's approximately $59 billion market cap, about $9 billion is held by investment vehicles tracking various indexes.

Analysts warned that if crypto treasury companies impacted by MSCI's proposal suddenly liquidate positions, this may force down digital asset prices. Passive mutual funds and ETFs tracking MSCI indexes will have to sell related stocks after index adjustments take effect, and this forced selling pressure will put double strain on company valuations and the crypto market.

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