- Analysts at JPMorgan warned the stock could face selling pressure if MSCI removes digital asset treasury companies from its indexes.
- Michael Saylor of Strategy reiterated his commitment to Bitcoin, stating he “won’t back down.”
- Crypto advocates called for a boycott of JPMorgan after their cautionary notes about index exclusions.
- Retail sentiment was bullish on JPMorgan but neutral regarding Bitcoin.
Strategy (MSTR) stock dropped by 14.6% last week, continuing a downward trend for the seventh consecutive week. The company, recognized as the largest corporate holder of Bitcoin, faces increased scrutiny as investors await a new update on its Bitcoin reserves, scheduled for Monday. This comes while Bitcoin itself experienced a price decline.
Last week, JPMorgan analysts warned the company’s shares could be at risk. If MSCI, a major investment research firm, decides to remove digital asset treasury companies from its indexes, this could lead to forced selling from funds that track these indexes. JPMorgan estimated that such a move might result in about $2.8 billion in forced sales for Strategy shares—potentially up to $8.8 billion if other index providers, including Russell, make similar decisions. Details on the potential impact were made public as MSCI continued deliberations on the matter.
In response, Michael Saylor, chair of Strategy, asserted he is standing firm on the company’s Bitcoin commitment. The company recently acquired over 8,100 Bitcoin worth around $836 million, increasing its total holdings to nearly 650,000 Bitcoin. Saylor emphasized in a statement that “Strategy is not a fund, not a trust, and not a holding company. We’re a publicly traded operating company with a $500 million software business and a unique treasury strategy that uses Bitcoin (BTC) as productive capital.” He also characterized recent crypto market volatility as “Satoshi’s gift to the faithful.”
Meanwhile, calls to boycott JPMorgan gained traction among crypto advocates after the bank’s analysts highlighted risks from potential index exclusions. Some well-known Bitcoin supporters, including Grant Cardone, have announced the withdrawal of funds from JPMorgan. Criticism also persisted on social media, as noted by several cryptocurrency advocates, who questioned the bank’s stance toward digital assets.
Despite past skepticism from CEO Jamie Dimon, JPMorgan is considering allowing its clients to use Bitcoin and Ethereum as loan collateral later this year. The bank already permits cryptocurrency-linked ETFs as collateral and may expand this policy further.
According to data from Stocktwits, retail sentiment remains ‘bullish’ on JPMorgan stock, while Bitcoin sentiment is labeled as ‘neutral.’ So far this year, JPMorgan shares have gained 23.7%, while Bitcoin has fallen by over 6%.
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