JPMorgan Chase: If Strategy's stock is removed from the index, it may face billions of dollars in capital outflow.

According to a report by JPMorgan Chase on Thursday, if global financial index provider MSCI removes Bitcoin "vault giant" Strategy (MSTR) from its stock index, the related capital outflow could reach as high as $2.8 billion; if other exchanges and index compilers follow suit, the total outflow could reach as high as $11.6 billion.

Analysis suggests that the recent decline in MSTR's stock price—coupled with its overall weak performance this year—is more due to market concerns about its potential removal from multiple indices, including MSCI, the Nasdaq 100, and the Russell 1000, rather than a decline in Bitcoin's own price.

"It is precisely because of the inclusion in these indices that Bitcoin exposure has indirectly seeped into the portfolios of both retail and institutional investors," the analyst wrote. "However, this previous indirect penetration may reverse as MSCI now considers removing MicroStrategy and other companies with predominantly digital asset holdings from its stock indices."

MSCI is evaluating a proposal to exclude companies whose primary business is holding Bitcoin or other crypto assets, and which such assets account for more than 50% of their balance sheets.

MSCI stated last month that this "consultation" will continue until the end of this year, with a final decision expected by January 15th.