"MicroStrategy, discusses index exclusion with MSCI… $8.8 billion outflow if delisted"

MicroStrategy, the world's largest Bitcoin (BTC) treasury company, is reportedly in talks with Morgan Stanley Capital International (MSCI) about possible exclusion from MSCI indices.

According to Reuters on the 3rd (local time), Michael Saylor, chairman of MicroStrategy, said at the "Binance Blockchain Week (BBW)" held in Dubai, United Arab Emirates (UAE) that "(regarding MSCI index exclusion) I am participating in the discussions." MicroStrategy is currently included in the MSCI USA and MSCI World indices.

MSCI indices are among the most influential stock indices in the world and serve as benchmark indices for global investors. When added to an MSCI index, passive funds that track the index flow in, and conversely, if removed, large capital outflows can occur.

Global investment bank J.P. Morgan recently predicted that MicroStrategy could be removed from MSCI indices. According to J.P. Morgan, MSCI will decide on MicroStrategy's index removal on the 15th of next month. J.P. Morgan analyzed that "if MicroStrategy is removed from MSCI indices, up to $8.8 billion of capital outflows could occur," and "(if excluded) MicroStrategy's future ability to raise capital and debt could be called into question."

Saylor said he "cannot be sure" about J.P. Morgan's analysis of large potential outflows. Regarding recent volatility in MicroStrategy's stock, he explained, "MicroStrategy operates based on Bitcoin price appreciation, so its stock will be highly volatile," and "if Bitcoin prices fall by 30~40%, the (MicroStrategy) stock is designed to fall further."