Bitcoin

Billion

would

Trillion

Strategy Inc. (<a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-nasdaq.aspx?TargetURL=https://www.etoro.com/markets/nsdq100">NASDAQ</a>: STRT) is facing increasing <a href="https://www.bloomberg.com/news/articles/2025-11-20/michael-saylor-s-strategy-risks-losing-billions-in-index-flows?srnd=phx-crypto" target="_blank" rel="noopener noreferrer nofollow">index-related selling pressure</a> as Bitcoin currently trades for $86,823 as of November 23, 2025, following last week’s dip below $82,000, according to <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener noreferrer">CoinMarketCap</a>.
With the increasing risk of rejection from major equity indices,<a href="https://www.investing.com/news/analyst-ratings/microstrategy-stock-faces-index-exclusion-risk-jpmorgan-warns-93CH-4371553" target="_blank" rel="noopener noreferrer nofollow"> JP Morgan</a> sees as much as $8.8 billion in forced redemptions from passive funds, which includes around $2.8 billion that is directly linked to the MSCI indices, with the remainder potentially coming if the <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-nasdaq.aspx?TargetURL=https://www.etoro.com/markets/nsdq100">Nasdaq</a> 100 and other providers follow suit.
<h2 id="b-1-trillion-crypto-wipeout-exposes-the-cracks-in-saylor-s-masterplan-b">$1 Trillion Crypto Wipeout Exposes the Cracks in Saylor’s Masterplan</h2>
<a href="https://bitcointreasuries.net/" target="_blank" rel="noopener noreferrer nofollow">Strategy</a> holds 649,870 <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">BTC</a>, purchased at an average price of $74,433 for a total cost basis of $48.37 billion. The company’s treasury has generated a 27.8% year-to-date <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">Bitcoin</a> yield through November and an unrealized gain of approximately 15.8% as of mid-month.
The company’s market-cap-to-net-asset-value (mNAV) multiple has reduced to around 1.19x,&nbsp; the lowest since the pandemic era, following&nbsp; a general crypto market decline that has erased $1 trillion in total capitalization over the last month.
<a href="https://finance.yahoo.com/quote/MSTR/history/" target="_blank" rel="noopener noreferrer nofollow">Shares</a> closed Friday, November 21, 2025, at $170.50 and were last quoted at $172.82 in Sunday trading, down roughly 40% over the past month and 68% from all-time highs.
<h2 id="b-the-day-strategy-could-lose-billions-in-passive-money-b">The Day Strategy Could Lose Billions in Passive Money&nbsp;&nbsp;</h2>
The risk is believed to be caused by the ongoing MSCI consultation, which is scheduled to close on December 31, 2025. The MSCI consultation proposes reclassifying companies whose cryptocurrency holdings exceed 50% of total assets as “digital asset treasury companies.”&nbsp;
Strategy’s Bitcoin treasury currently represents more than 77% of its balance sheet, well above the proposed threshold. A final decision is expected on or around January 15, 2026, with any changes taking effect in February.
Passive vehicles tracking the MSCI USA, Nasdaq 100, and related indices currently hold an estimated $9 billion of Strategy stock. Any forced selling during rebalancing periods would be mechanical and largely price-insensitive, creating a potential feedback loop of downward pressure.
<h2 id="b-the-8-8-billion-question-hanging-over-every-bitcoin-treasury-stock-b">The $8.8 Billion Question Hanging Over Every Bitcoin Treasury Stock</h2>
S&amp;P Global already gives Strategy’s debt a junk rating on the basis of concentration risk and volatility. The recent sell-off in the company’s preferred shares has also raised the effective cost of future capital raises.
Saylor has defended the treasury strategy as an efficient way to “sell volatility and recycle it back into <a rel="noopener noreferrer nofollow" target="_blank" href="https://med.etoro.com/B10215_A67747_TClick_Scb-bitcoin.aspx?TargetURL=https://www.etoro.com/markets/btc">Bitcoin</a>,” while pointing to the company’s software business and AI products as evidence it remains an operating company.
Traders also point out that a continued Bitcoin recovery above $100,000 would likely expand the mNAV premium and reduce exclusion risk. A further 15% decline from current price levels would push the treasury position down close to its $74,433 average acquisition cost.
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This article was originally published as <a href="https://www.cryptobreaking.com/strategy-faces-8-8-billion/?utm_source=rss&amp;utm_medium=syndication&amp;utm_campaign=article_footer" rel="noopener noreferrer nofollow">Strategy Faces $8.8 Billion Passive Sell-Off as MSCI Eyes Bitcoin Treasury Ban&nbsp;&nbsp;</a> on <a href="https://www.cryptobreaking.com/?utm_source=rss&amp;utm_medium=syndication&amp;utm_campaign=article_footer" rel="noopener noreferrer nofollow">Crypto Breaking News</a> – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Strategy Faces $8.8 Billion Passive Sell-Off as MSCI Eyes Bitcoin Treasury Ban

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