Crypto Reserve Companies Face Uncertainty as MSCI Weighs Index Classification

MicroStrategy (MSTR), a leading player in cryptocurrency-backed reserve companies, is navigating significant challenges stemming from its classification under the MSCI index. Since 2020, MSTR has been accumulating Bitcoin and strategically increasing its reserves. However, MSCI’s proposal for classifying these entities as funds poses a major hurdle. If approved, this move could lead to widespread sell-offs within the cryptocurrency market.