JPMorgan Chase: The risk of Strategy being removed from MSCI has been priced in by the market.

PANews reported on December 4th, citing Bloomberg, that JPMorgan Chase stated that Strategy Inc.'s stock price has already reflected the risk of being removed from major stock benchmark indices and sees the upcoming MSCI decision as a potential catalyst for an upward move, although removal would still trigger passive capital outflows. JPMorgan Chase previously estimated that if index-tracking funds were required to divest related assets, there could be as much as $2.8 billion in outflows. However, after a significant sell-off, JPMorgan Chase believes that most of the losses are already reflected in the stock price. Following the report's release, Strategy's stock price plummeted by approximately 20%, and is currently trading near the value of the company's Bitcoin holdings.

In a report, their analyst team wrote, "In our view, the decision to remove Strategy from the MSCI index will have a limited negative impact on Strategy and Bitcoin, as the effects of the index removal have already been fully priced in. On the other hand, if MSCI's decision on January 15 is positive, then Strategy and Bitcoin's share prices and prices are likely to rebound strongly to levels seen before October 10." JPMorgan also reiterated its volatility-adjusted comparison of Bitcoin and gold, suggesting a theoretical price for Bitcoin approaching $170,000 over the next 6 to 12 months. While this prediction is speculative, it highlights the potential upside the bank sees ahead of the MSCI ruling.