Key Highlights
- JPMorgan estimated that Strategy (MSTR) could face up to $2.8 billion in outflows if MSCI removes crypto-heavy companies from its major indexes.
- The research note coincided with a sharp decline in MSTR’s stock, which fell to its lowest level this year, fueling accusations that JPMorgan was deliberately pressuring crypto-aligned firms.
- Grant Cardone and Max Keiser launched public calls to boycott JPMorgan, with critics drawing parallels to the GameStop short squeeze against institutional finance.
- The backlash also revived criticism of JPMorgan’s past Epstein ties, further escalating tensions between the crypto community and traditional banking institutions.
A backlash from Bitcoin supporters and several high-profile investors has intensified against JPMorgan Chase after the bank issued a research note warning that Strategy (MSTR) could face billions in outflows if removed from major MSCI (Morgan Stanley Capital International) indexes.
The research note, issued earlier this week, coincided with a steep fall in Strategy’s stock price and triggered public calls for a boycott of JPMorgan from prominent figures in the crypto community.
JPMorgan’s Report and Strategy’s Market Decline
In its analysis, JPMorgan estimated that Strategy could face up to $2.8 billion in outflows if MSCI excludes crypto treasury companies from its benchmarks. The bank also warned that if other index providers adopt similar policies, the total potential withdrawals could reach $8.8 billion.
Following the publication of the report, Strategy’s stock (MSTR) fell below $200 midweek and continued sliding to around $170 by Friday, marking its lowest level this year.
The stock had previously traded above $450 in July. Year-to-date, MSTR is down 41%, and over the past twelve months, it has dropped nearly 57%, according to data from Yahoo Finance.
Allegations of Market Pressure and Boycott Calls
The report immediately drew criticism from Bitcoin advocates, who accused JPMorgan of attempting to influence Strategy’s market performance. Some community members also spread claims, without confirmed evidence, that the bank may be short-selling MSTR, suggesting it could benefit from a price decline.
Attorney John Deaton, known for his work in the XRP (Ripple) ecosystem, was among the most vocal critics. Deaton said that if JPMorgan were betting against Strategy, he hoped a “GameStop rage trade” would emerge, referencing the 2021 short squeeze in which retail traders drove up the share price of GameStop to challenge institutional investors.
The controversy also revived long-standing criticism of JPMorgan’s historic ties to Jeffrey Epstein, which have been the subject of Congressional scrutiny.
Calls to boycott JPMorgan quickly spread across Bitcoin-focused channels and social media. Real estate investor and Bitcoin supporter Grant Cardone announced that he had closed his accounts with the bank, stating, “I cancelled my JPM account and moved entire account to Wells.” Cardone also claimed he was pursuing legal action against the bank related to credit card issues.
Max Keiser, a senior Bitcoin advisor to El Salvador President Nayib Bukele, also joined the movement and urged supporters to “Crash JP Morgan and buy Strategy and BTC.”
Supporters argue that the JPMorgan note created unnecessary market pressure during a volatile period for companies with large cryptocurrency holdings, and they see the situation as part of a broader divide between traditional financial institutions and Bitcoin-aligned firms.
MSCI’s Proposed Changes and their market impact
The backlash started after MSCI suggested changes to the rules it uses to decide which companies belong in its indexes. MSCI, one of the world’s leading index providers, is weighing a rule that would drop any company whose balance sheet is made up of 50% or more in cryptocurrency. These businesses, often referred to as “crypto treasury companies,” are the ones that hold digital assets as a central part of their operations.
If the new rule goes into effect in January 2026, funds that follow MSCI indexes would be required to sell shares of any company that no longer qualifies, which could trigger automatic outflows from those firms.
Analysts warn that such large-scale selling could add downward pressure not only on Strategy’s stock but also on cryptocurrency prices, due to the company’s significant Bitcoin reserves.
Michael Saylor responds to MSCI
Strategy founder and executive chairman Michael Saylor addressed the proposed index changes and rejected the idea that his company should be grouped with passive Bitcoin vehicles. Saylor said, “Strategy is not a fund, not a trust, and not a holding company.”
He argued that, unlike funds or trusts that simply hold assets, Strategy is a “Bitcoin-backed structured finance company” and therefore should not be treated as a passive digital-asset holder.
Strategy’s inclusion in the Nasdaq-100 in December 2024 had previously enabled it to benefit from passive investment flows tied to major index funds, benefits that could be at risk if MSCI’s new policy is adopted.
Growing Tension Between Crypto and Traditional Banking
The clash has underscored the widening gap between Bitcoin supporters and the traditional banking world. Many in the crypto community see JPMorgan’s report as yet another sign that large banks are unwilling to support companies that have built their businesses around digital assets.
On the other side, institutions argue that the discussion over index rules is simply part of figuring out how companies with heavy cryptocurrency exposure should be treated in mainstream markets.
MSCI is expected to finalize its new index rules next year, and the outcome will be closely watched across the market. Investors, regulators, and funds that track MSCI benchmarks are all trying to understand how the changes could affect companies with large cryptocurrency holdings.
Whether this turns into a prolonged fight between the crypto community and traditional finance or settles down once MSCI makes its decision is still hard to predict. For now, though, the calls to boycott JPMorgan from Bitcoin supporters are continuing to grow.
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