JPMorgan: The risk of Strategy being removed from MSCI has largely been digested.

Techub News, according to Bloomberg, JPMorgan stated in its latest research report that the stock price of Bitcoin treasury company Strategy Inc. has largely reflected the risk of being removed from major stock benchmark indices. It views the upcoming MSCI index compilation decision as a potential upside catalyst, even though removal would still trigger passive selling and outflows from passive funds.

JPMorgan previously estimated that if index-tracking funds were required to divest related assets, the scale of fund outflows could reach up to approximately $2.8 billion. However, after a round of significant sell-offs, the bank believes most negative expectations are already reflected in the current price. The report stated that after the research report was released, Strategy's stock price fell by about 20% intraday. The current stock price is already approaching the book value of the company's Bitcoin assets, and its subsequent performance will still depend on MSCI's final decision and the trend of Bitcoin prices.