TD Cowen Pushes Back as MSCI Eyes Strategy’s Removal Over Bitcoin Treasury Dominance

26. Nov 2025 Posted by Laurent C. on News

TD Cowen is challenging what it calls a misguided move as MSCI prepares to remove digital-asset-heavy public companies—most notably Strategy, formerly MicroStrategy—from all of its indices beginning early 2026. The investment bank expects MSCI’s formal announcement around mid-January 2026, aligning with ongoing scrutiny from major index providers.

Strategy, which rebranded in February 2026, has transformed from a traditional software firm into the world’s most prominent Bitcoin treasury company. Since launching its BTC-focused strategy in 2020, the company has accumulated 649,870 Bitcoin, making it the largest corporate holder of the asset.

However, this aggressive accumulation is exactly what has placed the firm under index review. MSCI is weighing a new rule that would exclude any company allocating over 50% of its total assets to crypto, a threshold Strategy exceeds by a wide margin. The potential exclusion echoes earlier warnings from Wall Street that large equity indices may rethink their exposure to BTC-heavy corporations.

Strategy’s leadership maintains that the firm is not a fund or trust but rather a public software company with a powerful treasury model built around Bitcoin as productive capital. TD Cowen echoed this stance, describing the company’s BTC-backed financial structure as “groundbreaking” and “potentially revolutionary,” adding that the proposed removal appears arbitrary and rooted in an anti-Bitcoin bias.

Billions in Forced Selling Could Follow

TD Cowen estimates that if MSCI finalizes the removal, index funds would be obligated to sell approximately $2.5 billion worth of Strategy shares (MSTR). If other index families follow MSCI’s blueprint, total forced selling could surge to $5.5 billion.

Despite the likely short-term volatility, the bank says the decision is merely an “unfortunate speed bump” on the path to broader global Bitcoin adoption. It still views Strategy as one of the most accessible vehicles for institutional and retail investors seeking Bitcoin-based exposure.

At the time of writing, MSTR traded at $172.77, down 3.5% on the day, while Bitcoin rose 0.84% to $86,784.14.