Luke Juricic
2 min read
Investing.com — Shares of Strategy Inc (NASDAQ:MSTR) fell 2.4% in extended trading Wednesday after index provider MSCI Inc. confirmed it will drop the company from its benchmark equity indexes as part of its November 2026 review. The deletion removes Strategy’s Class A shares from the MSCI USA Large Cap Index, threatening to trigger billions of dollars in passive fund outflows.
The move follows MSCI’s implementation of a revised methodology targeting non-operating entities, which evaluates whether an issuer maintains substantial operating assets or fails a series of core financial screens across consecutive annual reporting periods. Strategy, which carries a total market capitalization of over $40 billion and a float-adjusted value of $37.3 billion, is the largest constituent affected ahead of the framework taking effect at the close of Nov. 30.
The exclusion compounds structural scrutiny surrounding executive chairman Michael Saylor’s debt-and-equity-fueled treasury strategy, which has accumulated more than $60 billion in Bitcoin since mid-2020. The company’s acquisition engine has relied heavily on selling common stock and preferred shares at a premium to net asset value, a mechanism that could face friction as mandatory index-tracking liquidations take hold.
Management had signaled the risk to investors in late October, noting in its third-quarter SEC filing that it anticipated an exclusion under MSCI’s tightened criteria. Strategy shares have declined approximately 20% year-to-date, slightly outpacing a 15% slide in Bitcoin over the same period.
MSCI’s broader sweep also led to deletions for peers including Tokyo-listed Metaplanet and the UK’s Yellow Cake, alongside placing nearly two dozen crypto- and holding-focused firms on an exclusion watchlist. Against that backdrop, market participants will be closely watching whether the anticipated supply overhang further compresses Strategy’s trading premium as the month-end rebalancing approaches.
Original Article
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