Strategy Stock Crashes 57% — Is a Massive Nasdaq 100 Delisting Now Unstoppable?

Sean Williams
MicroStrategy

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  • MSTR stock has fallen 57% in six months, risking index removal.
  • Passive fund sales could total $2.8–8 billion if delisting occurs.
  • Bitcoin exposure through Strategy stock may shrink, but BTC holdings remain intact.

Michael Saylor’s Strategy, the company renowned for its massive Bitcoin holdings, is facing a precarious moment. With MSTR stock plunging over 57% in six months, the company risks being delisted from the Nasdaq 100 and MSCI USA indexes. This decline not only raises concerns for investors but also puts a spotlight on the impact of Bitcoin volatility on corporate stocks.

Why Strategy Is on the Verge of Delisting

Strategy’s deep Bitcoin exposure has made its stock behave almost like a proxy for Bitcoin itself. When Bitcoin surged, MSTR soared; now, the reverse is true. Bitcoin’s fall from its $126,000 peak to around $85,000 has hit Strategy hard:

Nasdaq 100 and MSCI USA indexes maintain strict inclusion rules based on market capitalization, trading activity, and performance. When a company falls behind in these metrics, it risks removal, regardless of its brand recognition or market influence.

Potential Market Fallout

JPMorgan analysts have warned that MSCI’s January 15, 2026 decision could formalize the removal of Strategy from its index, effective after the February 2026 rebalancing. Forced selling by passive funds could reach $2.8 billion, potentially rising to $8 billion if other indexes follow suit. While Strategy remains listed on Nasdaq, the loss of index inclusion could trigger significant downward pressure on its stock.

Also Read: Bitcoin Drops 29% Amid ETF Selling, But Strategy’s $835M Buy Signals Bullish Outlook

Implications for Bitcoin

Holding 649,870 BTC valued around $55.65 billion, Strategy acts as a major channel for U.S. investors to gain Bitcoin exposure via stock markets. If MSTR stock drops due to delisting, this exposure may shrink. While rumors of Bitcoin liquidation could amplify selling pressure, maintaining BTC holdings could mitigate direct negative impacts on the crypto market.

Strategy’s potential index delisting underscores the risks of tying corporate fortunes closely to volatile assets like Bitcoin. Investors must weigh the allure of Bitcoin-backed stocks against market rules and the possibility of sudden declines. Saylor’s bold strategy continues to captivate, but it comes with significant stakes.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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