Strategy (MSTR), the largest public holder of Bitcoin BTC$92,933.54is in talks with index provider MSCI over its decision to remove the company from major equity benchmarks.
A decision is expected to be made by January 15, Reuters said. The results could have significant implications for the Tysons Corner, Virginia-based company.
JPMorgan analysts last month estimated that if other index providers followed MSCI’s lead, the deletion could result in up to $8.8 billion in outflows. That’s because Strategy is included in indexes such as MSCI USA and MSCI World and is part of many passive investment products.
“We are working through that process,” Thaler told Reuters in response to a question about MSCI, adding that he was “not confident” in the accuracy of JPMorgan’s estimates.
Strategies, which has 650,000 BTC on its balance sheet, has faced criticism over the past few weeks after the price of the leading cryptocurrency plummeted from an all-time high of more than $120,000 to $82,000.
While the price of Bitcoin has recovered to $93,000, still about 26% below its all-time high, critics argue that Strategy’s bond and equity issuances to accumulate Bitcoin are not sustainable. The company’s stock price has fallen 37% this year.
Updated (December 3, 10:40 UTC): Add omitted citations to headings.