Msci Prepares to Remove Strategy Inc. From Indexes

MSCI plans to classify companies like Strategy Inc. as 'non-operating' to make them ineligible for its global indexes.

Strategy Stock Drops 9.6% After News

Strategy's stock fell 9.6% to $137 on October 16, dropping 11.4% over the past week.

Why Msci Targeted Strategy Inc.

MSCI proposed excluding companies with digital assets over 50% of total assets, which Strategy opposed as 'discriminatory' and 'arbitrary'.

“discriminatory towards digital assets”

Strategy's Bitcoin Holdings

Strategy holds 848,250 BTC valued at $69 billion, exceeding its $55.25 billion market cap.

Index Funds Would Sell Shares, Not Bitcoin

If Strategy is removed, index funds would sell shares, triggering $2.8 billion in forced selling but not directly impacting Bitcoin.

Strategy's Financial Pressure

Strategy reported a $8.22 billion net loss due to $8.32 billion unrealized loss on Bitcoin, requiring fair value accounting.

Strategy's Bitcoin Sales Activity

Strategy has sold $218.4 million of Bitcoin this year, with $1.25 billion approved for sales to support its USD Reserve.

Bitcoin Price Context

Bitcoin trades at $81,548, 8% above Strategy's average purchase price of $75,444 and 35.3% below its record high of $126,080.

Potential Bitcoin Price Impact

If Strategy sells more Bitcoin, Bitcoin prices could drop; otherwise, the stock drop affects only MSTR shareholders.

Final Decision Date

MSCI will finalize removals by November 11, 2026, with removals starting November 30, 2.026.