Strategy faces MSCI ouster under new rules, billions in passive holdings at risk
MSTR•MSCI’s new rules could remove Strategy from its global equity indexes, putting passive investments in the bitcoin buyer at risk. Strategy warned last year that exclusion would trigger $2.8 billion in stock liquidations; MSCI will publish its final list of affected companies on November 11.
1. Potential index removal
Strategy faces potential removal from MSCI’s global equity indexes under rules adopted Thursday. MSCI said non-operating companies will be ineligible for its Global Investable Market Indexes from the close of November 30, with the final list of affected companies due November 11.
2. Companies under review
Strategy and Japan’s Metaplanet are on MSCI’s list of potential deletions, while SharpLink and several other crypto treasury companies are on a watchlist. MSCI defines non-operating companies to include investment funds, business development companies and other companies whose finances make them resemble investment funds.
3. Potential impact
Strategy warned last year that exclusion would result in $2.8 billion of its stock being liquidated and would “chill” the industry. Index inclusion matters because passive funds and other investors tracking benchmarks are required to hold constituent shares. Strategy had a market value of about $64.3 billion on Friday.
