Strategy and the crypto treasury company are facing the risk of being more broadly removed from stock indices.

On December 20, according to Reuters, Strategy (MSTR.O) may soon be removed from MSCI and other major stock indices. Analysts say this move could result in the company, which holds a large amount of Bitcoin, losing up to approximately $9 billion in stock demand and weaken the attractiveness of the entire sector. In response to client inquiries, MSCI proposed in October to exclude companies with digital asset holdings that account for 50% or more of their total assets from its global benchmark indices. MSCI considers such companies to be more like investment funds, which are not included in its index system. However, many related companies counter that they are actual operating firms developing innovative products, and believe MSCI’s proposal unfairly discriminates against the crypto industry. Additionally, dozens of companies have been inspired to include cryptocurrencies on their balance sheets in hopes of future appreciation, but questions about the sustainability of these business models are also increasing. MSCI is conducting a public consultation and will announce its final decision on January 15. Analysts note that if MSCI excludes Digital Asset Treasury (DAT) companies from its indices, other index providers may follow suit.