Strategy Stock (MSTR), the common A stock of Michael Saylor’s company, is fighting to keep its place in the prestigious MSCI (MSCI) World Index. The company is urging MSCI to retain MSTR in its indexes even as Strategy has significantly raised its Bitcoin holdings to 650,000 BTC and recently lowered its 2025 targets.
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Strategy founder Michael Saylor confirmed the company is communicating with the index provider about the issue, stating: “We’re engaging in that process.” Saylor also offered a stark warning on the nature of the stock, saying its equity is “going to be volatile because the company is built on amplified Bitcoin.”
Strategy Stock Is ‘Built To Fall’
The potential exclusion from the MSCI indexes stems from volatility concerns surrounding Digital Asset Treasury (DAT) stocks like Strategy, which hold large amounts of Bitcoin. Strategy stock has already dropped by 54% in the past year.
Addressing the question of this volatility, Saylor offered an assessment, confirming the high-risk nature of the stock: “If Bitcoin falls 30%, 40% then the equity is going to fall more, because the equity is built to fall.” This admission comes as MSCI holds consultations on whether to delete MSTR and other DATs from its key indexes.
Strategy Fights to Avoid MSCI Index Deletion
Strategy’s MSTR stock first became part of the MSCI World Index in May 2024, a major corporate milestone achieved three years after the company began accumulating Bitcoin. The index is a widely followed global benchmark that tracks the performance of more than 1,300 large and mid-cap companies across 23 developed markets.
The company is working to counter potential exclusion, which JPMorgan estimated could trigger significant outflows of $2.8 billion. MSCI’s consultation remains open until December 31, 2025, with final conclusions expected by January 15, 2026.
Bitcoin Holdings Hit Symbolic Milestone
Despite the stock volatility and regulatory uncertainty, Strategy continues to double down on its Bitcoin strategy. The company recently increased its holdings to a symbolic milestone of 650,000 BTC.
Strategy took this aggressive step even as it significantly lowered its KPI targets for 2025 amid Bitcoin’s decline below $90,000. This reinforces the company’s commitment to its DAT strategy, even as it takes action, like launching a $1.44 billion U.S. dollar reserve, o support dividend payments and debt interest.
Key Takeaway
Strategy stock is actively battling to maintain its important spot in the MSCI World Index. This confirms how high the risk involved in its Bitcoin-amplified business model is. The result of the MSCI consultation will not only affect Strategy, but will set a major precedent for the entire sector of public companies that hold digital assets on their balance sheets.
Is Strategy a Good Stock to Buy?
Analyst sentiment toward Strategy (MSTR) is strongly bullish, rated as a Strong Buy based on the consensus of 14 analysts tracked in the last three months. Of these ratings, 12 analysts call it a Buy, two recommend a Hold, and zero recommend a Sell.
The average 12-month MSTR price target sits at $524.08. This target implies a massive upside potential of 189.02% from the last price.
