Why Michael Saylor ‘won’t back down’ as $8 billion of MSTR is at risk

Key Takeaways

Where will the $8 billion pressure come from?

From funds with MSTR positions via the MSCI, and if other indexes follow suit.

What is Saylor’s response?

He said Strategy is an operating company with a $500 million software business and active capital raising expansion plans.

Michael Saylor’s (Nasdaq: MSTR) strategy could remain muted until the MSCI ratings report in mid-January 2026.

This is reported by the investment bank and stock exchange company TD CowenMSTR stock could face selling pressure of about $8 billion if MSCI were to remove it from the index. In a report the company says:

“We believe that ~$2.5 billion of value can be attributed to MSTR holdings within MSCI indexes, while another ~$5.5 billion is in other indexes that could theoretically follow MSCI’s lead.”

The MSCI review, which became public last week, was shared internally for the first time on October 10.

According to the global index, public Bitcoin treasury companies, such as Strategy, are passive and behave like investment funds; therefore they should not be mentioned. Only operating companies are included in the index.

But TD Cowen argued that Strategy was an operating company with a $500 million software business, despite accounting for a small portion of the company’s total value. The company added:

“Strategy is clearly not an investment fund. So we wonder whether MSCI might simply be expressing a bias against Bitcoin.”

Saylor’s response to MSCI

Last week, Strategy founder Michael Saylor also discredited the planned index exclusion added,

“Strategy is not a fund, a trust or a holding company. Funds and trusts passively hold assets. No passive vehicle or holding company could do what we do.”

He joked that the “index rating does not define the strategy” and reiterated their long-term belief in BTC.

In separate social media posts, Saylor added that he will not “back down,” stressing that increased $21 billion by 2025 alone.

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It seemed like a subtle joke to be labeled a ‘passive company’. Passive companies rarely raise capital because they have no activities that require expansion.

Raising $21 billion meant that Strategy is by definition an operating company that meets the listing requirements of the MSCI index.

It remains to be seen whether MSCI will withdraw or proceed with the delisting of MSTR early next year.

Meanwhile, Bitcoin [BTC] held above $80,000 and even attempted to recover $90,000 on November 24. MSTR followed continued and rose 5% to $179.