‘Avoided MSCI Delisting, But...’ Strategy Inc Trapped in a ‘Discount Slump’ [Crypto Briefing]

[The Financial News] Morgan Stanley Capital International (MSCI) has decided not to remove Strategy Inc and other digital asset treasury companies (Digital Asset Treasury, DAT) from its indexes, easing fears of a large-scale passive outflow for now. However, Strategy Inc’s share price has fallen more than 40% over the past year and is now trading below the value of its Bitcoin (BTC) holdings, leading some analysts to say the stock has entered a ‘discount’ phase. Brokerage houses warn that, more than the relief of remaining in the MSCI index, the deterioration in capital-raising capacity caused by the share price slump could threaten the sustainability of the DAT business model.
According to the financial investment industry on the 9th, MSCI has put on hold a plan to exclude companies with a high proportion of virtual assets from its indexes ahead of its regular review in February. MSCI had initially considered classifying companies whose virtual assets account for 50% or more of total assets, or that raise capital specifically to purchase virtual assets, as ‘non-operating companies’ and removing them from its benchmarks.
Market participants had estimated that, if Strategy Inc were dropped from MSCI’s indexes, passive funds would dump roughly 1.9 billion dollars (about 2.6 trillion won) worth of shares. This is smaller than the 2.8 billion dollars some had feared, but still large enough to affect supply and demand. With MSCI’s decision to delay the change, Strategy Inc will retain its status as a constituent of major benchmarks such as the MSCI All Country World Index (MSCI ACWI).
The real issue lies in the fundamentals. Strategy Inc closed at 166.97 dollars in the previous session, down 42.35% over the past year. Given that Bitcoin (BTC) has corrected only about 2.8% in the same period, many argue that the decline in Strategy Inc’s share price is excessive.
One key metric drawing attention is the net asset value (NAV) multiple. According to an analysis by Hanwha Investment & Securities, Strategy Inc’s market capitalization is currently about 0.8 times the value of its Bitcoin (BTC) holdings, estimated at roughly 670,000 BTC. This is far below the two-year average of 1.6 times. Traditionally, investors have assigned a premium to Strategy Inc for the ‘leverage effect’ of issuing new shares to buy additional BTC and thereby boosting corporate value.
Recently, however, critics point out that the stock is so undervalued that even if Strategy Inc were to liquidate all of its BTC holdings, it would still be left with more cash than its current market capitalization.
Experts caution that this undervaluation may not simply present a bargain-hunting opportunity. They warn that the core growth engine of DAT companies — a cycle of issuing richly valued shares, purchasing BTC, and then enjoying asset appreciation — could break down.
Hong Sung-uk, an analyst at NH Investment & Securities, noted, “The easing of concerns about Strategy Inc being removed from MSCI is positive, but the fact remains that the company’s capacity to acquire digital assets through rights issues has been exhausted by the share price decline.”

elikim@fnnews.com Kim Mi-hee Reporter