MicroStrategy’s Vulnerability in Wake of MSCI Index Review

Financial markets are presenting Microstrategy with new challenges, as the firm’s reliance on Bitcoin and its exposure to market indices creates a double-edged sword. The potential impact of MSCI’s index review is raising concerns about substantial outflows from investors if MicroStrategy loses its coveted spot in major indices like the MSCI USA and Nasdaq 100. JPMorgan analysts warn that this loss could trigger US$2.8 billion in selling pressure, jeopardizing the firm’s financial stability.