Bitcoin News Today: JPMorgan's $8.8B Crypto Exit Plan Sparks Industry Backlash

MicroStrategy's stock (MSTR) has shown resilience amid a contentious campaign by index provider MSCI to exclude crypto treasury companies from its benchmarks, with investors eyeing whether the stock could rebound toward $200. The debate centers on a proposed MSCI rule change that would bar firms with over 50% of assets in cryptocurrencies from inclusion in major indexes, a move analysts warn could trigger billions in forced selling and reshape Bitcoin's exposure in traditional markets. JPMorgan's research note on the topic, which outlined potential outflows of up to $8.8 billion if the rule is adopted, has drawn sharp criticism from the crypto community, with some accusing the bank of orchestrating a "hit job" against companies like MicroStrategy.

The proposed exclusion targets digital asset treasury (DAT) firms, which have become a key channel for institutional Bitcoin exposure. By mid-2025, over 190 U.S. companies held more than $115 billion in crypto, with MicroStrategy's $7.7 billion Bitcoin treasury representing a flagship example. MSCI's consultation, which closes on December 31, would force these firms to either reduce crypto holdings to qualify for index inclusion or face mechanical outflows from passive funds. JPMorgan estimates that excluding MicroStrategy alone could trigger $2.8 billion in passive outflows, with broader market implications if other index providers follow suit.

The backlash against JPMorgan has intensified, with calls for a boycott of the bank and its services. Influencers and investors, including real estate mogul Grant Cardone and Bitcoin advocate Max Keiser, have urged followers to close accounts and divest shares, accusing JPMorgan of manipulating margin requirements and exacerbating the sell-off in MSTR and Bitcoin. The bank has denied allegations of market rigging, but the controversy has deepened skepticism about traditional finance's role in regulating crypto exposure.

MicroStrategy's founder, Michael Saylor, has defended the company's model, emphasizing its $500 million software business and Bitcoin-backed securities as evidence of its status as an operating company rather than a passive fund. However, the stock's market value to net-asset-value (mNAV) ratio has compressed to just above 1, limiting its ability to issue new shares and raising concerns about liquidity pressures. Saylor has also warned that ETF inflows could offset potential treasury selling, though this remains unproven amid a broader drawdown in Bitcoin prices.

The MSCI rule change has accelerated a shift in Bitcoin exposure from corporate treasuries to regulated ETFs, which now hold over $100 billion in assets. This transition, while offering purer crypto exposure, could deepen liquidity risks for smaller DATs with weaker balance sheets. For Bitcoin itself, the outcome hinges on whether ETF inflows outpace forced selling from excluded firms-a scenario that remains uncertain as the January 2026 decision looms.

With MSTR trading near critical support levels and the crypto community mobilizing against JPMorgan, the stock's path to $200 appears fraught with volatility. The resolution of MSCI's consultation and the broader institutional appetite for Bitcoin will likely dictate whether MicroStrategy's rebound is a temporary rebound or a catalyst for a sustained recovery.