Crypto-heavy companies brace for $15B forced sales from MSCI changes
- MSCI’s proposal could trigger $10–$15 billion in crypto outflows.
- Analysts warn that selling pressure may worsen crypto’s three-month decline.
- Industry groups and companies push back, urging MSCI to reconsider.
Crypto treasury companies may face billions in forced sales if the Morgan Stanley Capital International Index (MSCI) removes them from its indexes. According to BitcoinForCorporations, 39 companies with substantial crypto holdings could see between $10 billion and $15 billion in passive outflows. These firms collectively hold a float-adjusted market capitalization of $113 billion.
JPMorgan’s analysis highlights the potential impact on Strategy. Michael Saylor’s company could see $2.8 billion in outflows. This is close to 74.5% of the total market capitalization affected by the proposal put forth by the MSCI. Analysts estimate the total potential outflows among the 39 organizations are close to $11.6 billion. This sort of extensive sales pressure could increase the fall in the cryptocurrency market. This has been decreasing for the last three months.
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Companies and Industry Push Back
Industry stakeholders have voiced concerns over MSCI’s proposal. BitcoinForCorporations argues that using a single balance sheet metric to define “crypto-asset treasury companies” is overly simplistic. The group insists companies’ operations, revenue, and business models remain unchanged despite crypto holdings.
The petition letter against MSCI has collected 1,268 signatures so far. Nasdaq-listed Strive has also urged MSCI to allow the market to decide whether to include Bitcoin-holding companies in passive investment products. Strategy has indicated that the proposed ruling may introduce bias against digital assets, thus undermining the neutral market arbitrator function that the index provider should fulfill.
Crypto-Heavy Companies May Face Sell-Offs
MSCI is set to make a final decision on January 15, as proposed adjustments would be included in the Index Review that takes place in February 2026. If that should come to pass, forcing a considerable number of sell-offs due to the exclusion of companies that tend to have heavy involvement with cryptocurrencies could put even more pressure on a sector that is already struggling.
Market watchers are following the situation closely because the moves by MSCI could set the tone for the inclusion of cryptocurrencies into major stock indices. Corporations and investors are left waiting and weighing the implications of the moves, coupled with the performance of the stock market, as the weeks go by.
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