JPMorgan Boosted Strategy Stake Ahead of MSCI Index Exclusion

JPMorgan Chase boosted its position in Strategy by 36% during the third quarter to reach 848,932 shares, according to a recent Form 13F filing. The bank's expanded stake faces paper losses after Strategy shares dropped 6.5% to close at $114.41 on Thursday, pulling the snapshot valuation of the position down to roughly $97.1 million from an earlier estimated $131.3 million when shares traded near $155. This shift matters for market participants because benchmark provider MSCI confirmed it will drop Strategy from its indexes after Nov. 30, threatening to trigger forced selling from funds tracking those indexes.

The quarterly disclosures highlight how major financial institutions adjusted their crypto-linked exposures heading into autumn. Alongside adding 224,545 shares of Strategy, JPMorgan expanded its holding in BlackRock's IBIT Bitcoin fund by 9.6% to 11,408,930 shares, valued at approximately $540 million. The filing also listed positions in Coinbase, Robinhood, and Bitcoin miners Core Scientific, MARA Holdings, Riot Platforms, Hut 8, and CleanSpark. The announcements coincided with broader crypto weakness as Bitcoin dropped 7% over 24 hours to $68,408.

Strategy previously warned that its removal from MSCI indexes could spur approximately $2.8 billion in share sales. JPMorgan estimated total outflows could reach $8.8 billion if other major index providers follow MSCI's lead. What to watch next: Investors will track portfolio rebalancing ahead of the Nov. 30 deadline to gauge the liquidity impact of passive fund outflows on Strategy and the broader digital asset equities sector.