The Bitcoin community is up in arms, accusing JPMorgan Chase of manipulating market conditions to undermine Strategy Inc. (formerly MicroStrategy) and other Digital Asset Treasury companies (DATs). These accusations stem from a confluence of events, including a JPMorgan analyst note regarding the potential exclusion of crypto treasury companies from MSCI indices, the launch of JPMorgan's own Bitcoin-linked investment products, and reports of account closures affecting crypto industry figures.
The core of the controversy revolves around a report issued by JPMorgan that highlighted the risk of Strategy and similar companies being removed from major equity indices, such as the MSCI US Index, due to their significant Bitcoin holdings. The report estimated that if MSCI reclassifies Strategy, approximately $2.8 billion in passive assets would be forced to sell, and if other index providers follow suit, mechanical outflows could reach $8.8 billion. JPMorgan analysts pointed out that the MSCI US Index is reviewing whether companies holding large amounts of digital money should remain in traditional stock indices. MSCI's proposal targets companies whose digital-asset holdings exceed 50% of their total assets. The consultation window for this proposal extends through December 31, with a final decision expected on January 15, 2026. Implementation is tentatively scheduled for the February 2026 review.
Critics argue that JPMorgan's report served to amplify fears and create selling pressure on Strategy's stock (MSTR), which has already fallen significantly from its peak. Some analysts claim that JPMorgan strategically timed the release of its report to coincide with market weakness, exacerbating the decline. Adding fuel to the fire, JPMorgan has recently launched a structured note linked to BlackRock's iShares Bitcoin Trust (IBIT), offering investors leveraged exposure to Bitcoin. This product provides 1.5x the gains (or losses) of IBIT through December 2028. The Bitcoin community views this move as JPMorgan directly competing with Bitcoin treasury companies, creating an incentive to marginalize firms like Strategy to promote its own financial products.
Adding another layer of complexity, reports have emerged of JPMorgan closing accounts belonging to individuals within the crypto industry, including Strike CEO Jack Mallers. This has further fueled accusations of a coordinated attack on the crypto sector. Some Bitcoiners are calling for a boycott of JPMorgan, urging others to close their accounts and sell shares in the company. Grant Cardone, a real estate businessman and cryptocurrency supporter, claimed to have withdrawn $20 million from JPMorgan and is pursuing legal action against the bank.
Strategy CEO Michael Saylor has defended his company, asserting that it is a software enterprise with a sound financial strategy. He dismissed JPMorgan's report as "alarmist," suggesting that any potential exclusion from indices may already be factored into the stock price. Despite the controversy, Strategy maintains that its substantial Bitcoin holdings provide a buffer against debt obligations. As of November 2025, MicroStrategy holds over 649,000 Bitcoins.
The situation highlights the growing tension between traditional financial institutions and the burgeoning cryptocurrency market. While firms like JPMorgan are exploring ways to offer crypto exposure to their clients, some members of the Bitcoin community remain wary of their motives and accuse them of attempting to control and manipulate the market. The coming months will be critical as MSCI finalizes its decision on index inclusion criteria and the broader implications of institutional involvement in Bitcoin continue to unfold.
