Crypto Community Slams JPMorgan as MSTR Faces $2.8B Outflow Risk

TLDR

• Grant Cardone joins the crypto community in calling for a boycott of JPMorgan after warnings of $2.8 billion in MSTR outflows.
• JPMorgan analysts estimate total withdrawals could reach $8.8 billion if other index providers follow MSCI’s lead.
• MSTR stock fell below $200 and continued to slide, reaching a low of $170 by the end of the week.
• The stock had peaked above $450 in mid-July, showing a 41% decline year-to-date and a 57% drop over the past year.
• Crypto community figures accuse JPMorgan of launching a premeditated attack on MSTR shareholders.

Real estate investor Grant Cardone joins calls from the crypto community to boycott JPMorgan. This comes after the bank warned that Strategy could face up to $2.8 billion in outflows if removed from MSCI indices. Analysts at JPMorgan further stated that total withdrawals could reach $8.8 billion if other index providers follow MSCI’s lead.

MSTR Stock Experiences Sharp Decline

Following JPMorgan’s warning, Strategy stock (MSTR) dropped below $200 on Wednesday, according to Yahoo Finance data. The decline continued through the week, with MSTR reaching a low of $170 by Friday’s market close. This marks a sharp contrast to its mid-July peak of over $450.

MSTR’s year-to-date performance now shows a 41% drop, with a 57% decrease over the past year. These figures reflect a significant turnaround for a stock that once outperformed the S&P 500. The downturn has intensified concerns among shareholders and the broader market.

Crypto community members have accused JPMorgan of deliberately targeting MSTR shareholders. Figures like Max Keiser, Bitcoin proponent and advisor to President Nayib Bukele, have joined the calls for action. They argue that JPMorgan’s actions against MSTR are part of a premeditated attack on the company’s value.

Lawyer John Deaton, a vocal advocate for XRP, also weighed in. He suggested that JPMorgan could be shorting MSTR, further fueling distrust. Deaton’s comments reflect growing frustration among retail investors with the bank’s influence.

JPMorgan’s Alleged Ties to Controversy Stir Tensions

Criticism of JPMorgan has intensified due to its alleged ties to Jeffrey Epstein. The bank has faced Congressional scrutiny for its oversight of Epstein’s financial activities. JPMorgan executives have faced accusations of involvement in Epstein’s operations, further complicating its public image.

These allegations are contributing to the mounting backlash against the bank. Critics suggest that JPMorgan’s influence may be a key factor in MSTR’s struggles. With the crypto community rallying against the bank, tensions continue to rise.

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