MicroStrategy removed from MSCI Index? Bitcoin community boycotts JPMorgan, withdraws $20 million

MSCI (formerly Morgan Stanley Capital International) has announced the potential removal of MicroStrategy (MSTR) from its indices in January 2026. JPMorgan shared this news in a research report, sparking a strong backlash from the Bitcoin community. Real estate investor and Bitcoin advocate Grant Cardone announced he had withdrawn $20 million from JPMorgan and is suing its credit card business.

MSCI Rule Change Triggers MicroStrategy Index Eligibility Crisis

MSCI’s latest announcement reveals that the index provider has set new inclusion standards, likely to exclude cryptocurrency financial companies from its indices as early as January 2026. The proposed listing standard change would force any financial company whose balance sheet consists of 50% or more crypto assets to lose its index eligibility. For MicroStrategy, this is a fatal blow, as the company holds a large amount of Bitcoin as its core strategy.

MicroStrategy entered the Nasdaq 100 Index in December 2024, an index covering the 100 largest companies by market capitalization listed on the technology-focused exchange. This allowed MicroStrategy to benefit from passive capital flows from funds and investors holding the Nasdaq 100 Index. Inclusion in a major index means tens of billions of dollars in passive funds are required to buy the company’s stock, providing powerful structural support for its share price.

However, excluding crypto treasury companies from stock indices could trigger automatic selling by funds and asset managers, as these entities must buy specific types of financial instruments, potentially negatively affecting the crypto market. When index funds are forced to sell MicroStrategy stock, it will not only depress MSTR’s share price but may also indirectly impact Bitcoin’s price, as the market fears MicroStrategy may be forced to sell Bitcoin to reduce its crypto holdings ratio.

Three Major Impacts of MSCI Rule Change

Loss of Passive Capital Flows: MicroStrategy will lose continuous buying support from Nasdaq 100 Index funds.

Forced Selling Pressure: Index funds must automatically sell MicroStrategy stock, creating downward pressure on the share price.

Market Chain Reaction: Analysts believe affected companies suddenly selling crypto assets could cause digital asset prices to drop.

These companies will face two choices: either reduce their crypto holdings below the index inclusion threshold, or lose passive capital flows from market indices. For MicroStrategy founder Michael Saylor, the first option is nearly impossible, as his entire strategy is to continually buy Bitcoin as a long-term reserve asset. The second option means giving up the enormous benefits of being a major index constituent.

Bitcoin Community Launches JPMorgan Boycott

(Source: JPMorgan)

JPMorgan shared MSCI’s latest news in a research report, an act seen by the Bitcoin community as hostile toward the crypto industry. Although JPMorgan was merely relaying MSCI’s decision, as the messenger and potential supporter, the Wall Street giant became the focus of Bitcoin supporters’ anger.

Real estate investor and Bitcoin advocate Grant Cardone, responding to calls to boycott the financial services giant, said: “I just pulled $20 million out of JPMorgan and am suing them for misconduct in their credit card business.” This is not merely a symbolic protest, but a real withdrawal of funds—demonstrating the Bitcoin community’s anger has translated into concrete action.

As the online boycott movement escalated, Bitcoin advocate Max Keiser stated: “Crash JPMorgan, buy Strategy and Bitcoin.” This slogan quickly spread within the community, combining the boycott of JPMorgan with support for MicroStrategy and Bitcoin, creating a sharp contrast between “selling traditional banks, buying crypto assets.”

The deeper logic behind this boycott is the Bitcoin community’s long-standing distrust of the traditional financial system. They believe that large Wall Street financial institutions have always tried to suppress the development of cryptocurrencies, as decentralized digital currencies threaten banks’ monopolistic position. MSCI’s rule change is seen as yet another attempt by traditional finance to marginalize crypto companies.

The Bitcoin community’s call for a boycott has been widely echoed on social media. Thousands of crypto investors have stated they will close their JPMorgan accounts and switch to more crypto-friendly financial institutions. While the economic impact of these individual actions may be limited, the symbolic significance is more important, showing the Bitcoin community’s unity and determination to say “no” to the traditional financial system.

Michael Saylor Responds: MicroStrategy Is Not a Fund or Trust

MicroStrategy founder Michael Saylor broke his silence on Friday, responding to MSCI’s proposed policy change. He stated: “Strategy is neither a fund, nor a trust, nor a holding company.” Saylor emphasized the fundamental difference between MicroStrategy and traditional investment vehicles, aiming to challenge MSCI’s classification standards from a definitional standpoint.

Saylor said, “Funds and trusts passively hold assets. Holding companies hold investments. We are responsible for creating, building, issuing, and operating structures.” He added that Strategy is “a structurally engineered company underpinned by Bitcoin.” The core of this defense strategy is to highlight MicroStrategy’s active management and substantive business operations, rather than simply being a passive holder of assets.

This argument seeks to position MicroStrategy as an operating tech company that happens to choose Bitcoin as its treasury strategy, rather than a passive crypto investment fund. Legally and from a regulatory perspective, this distinction could be crucial, as it determines whether MSCI has legitimate grounds to exclude MicroStrategy from its indices.

Saylor’s response shows he will not easily accept being removed from the index. He may take legal action or lobby MSCI to reconsider its classification standards. Additionally, MicroStrategy still has time before January 2026 to adjust its strategy; though significantly reducing its Bitcoin holdings seems unlikely, the company may explore other ways to meet index inclusion requirements.

The ultimate outcome of this controversy will have far-reaching implications for the entire cryptocurrency industry. If MSCI stands its ground and excludes companies like MicroStrategy, it could deter other public companies from adopting Bitcoin as a treasury reserve strategy. Conversely, if Saylor’s argument is recognized, it could give more companies the confidence to add crypto assets to their balance sheets.