JPMorgan Warns Strategy May Be Removed From Major Indexes
JPMorgan recently said that MSCI, a company that makes big stock market indexes, might remove Strategy. Strategy is a company that owns a lot of bitcoin. If MSCI removes Strategy, many investment funds that follow these indexes may have to sell their shares quickly. This could cause a large drop in Strategy’s share price.
Bitcoin Supporters React Strongly
Bitcoin fans were upset by JPMorgan’s warning. They think big banks are trying to stop bitcoin from growing. Fred Krueger, a bitcoin expert and co-author of “The Big Bitcoin Book,” said, “The enemy has a name: it’s the Banking system.”
Real-estate investor and bitcoin supporter Grant Cardone said he took $20 million out of Chase Bank. He also said he is suing the bank.
Famous bitcoin supporter Max Keiser encouraged people to “Crash JP Morgan and buy Strategy and BTC.” Many bitcoin fans started calling for a boycott of JPMorgan online.
Distrust of Big Banks Grows
Bitcoin supporters believe big banks criticize bitcoin publicly but build their own blockchain systems secretly. They think banks want to control digital money with their own version. This goes against bitcoin’s goal of being decentralized and free from control.
Strategy’s CEO Michael Saylor Defends the Company
Michael Saylor, chairman of Strategy, explained that Strategy is more than just a company that owns bitcoin. He said:
“Strategy is not a fund, not a trust, and not a holding company. We’re a publicly traded operating company with a $500 million software business and a unique treasury strategy that uses Bitcoin as productive capital.”
Saylor said Strategy raises money, builds new financial products, and creates tools backed by bitcoin. He said no other company like a passive fund can do this.
Strategy’s Stock Faces Pressure
Strategy’s stock has dropped more than bitcoin’s price. This worries investors. The company works best when its stock price is higher than the value of the bitcoin it owns. This helps Strategy raise money easily without hurting shareholders.
This comparison is called “mNAV.” When the stock price falls closer to the bitcoin value, raising money becomes harder.
Despite the price drop, Strategy’s bitcoin investment is still profitable. The company owns over 649,000 bitcoins. The average price they paid is about $74,000 per bitcoin. Even though bitcoin’s price has fallen, the investment is still worth more than what they paid.
What Could Happen If Strategy Is Removed From Indexes?
If MSCI removes Strategy, big funds may be forced to sell the stock. This could cause even more selling. It might also push both bitcoin’s and Strategy’s stock prices lower.
Bitcoin Community Stands Strong
Even with these challenges, many bitcoin fans remain confident in bitcoin’s future. The hashtags #BoycottJPM and #BoycottJPMorgan are widely used on social media. These encourage people to move their money away from traditional banks.
Michael Saylor also showed his support by posting: “I Won’t ₿ack Down.”
The battle between bitcoin supporters and big banks continues as both sides fight over the future of digital money.
