Shares of Strategy (NASDAQ:MSCI) rose by 3% on Wednesday as CEO Michael Saylor downplayed concerns about the company's potential removal from MSCI indices, while the recovery in Bitcoin's price provided additional support.
The cryptocurrency-focused company faces a decision on January 15 from the MSCI index provider, which evaluates whether to remove companies that primarily buy cryptocurrencies from its indices due to their similarity to investment funds. According to estimates from JP Morgan Chase & Co., Strategy, currently listed on the MSCI USA and MSCI World indices, could see outflows of up to $8.8 billion if removed.
"No difference will happen, in my opinion," said Saylor regarding the potential exclusion, confirming that the company "is engaged in that process" with MSCI. The president made these comments during an interview on the sidelines of a Binance event in Dubai, according to a report from Reuters.
The business model of Strategy involves using a public company structure to aggregate Bitcoin, allowing investors to gain exposure to cryptocurrencies through stocks. However, this approach has lost popularity among investors this year, as evidenced by the stock's 37% decline, significantly lagging behind Bitcoin's modest decline of 0.5%.
The stock movement on Wednesday coincided with Bitcoin's recovery to $93,000 after hitting a low of $83,800 on Monday, boosting related stocks across the sector.
