Strategy Stock Drops 9.6% After MSCI Proposes an Index Rule Change

Strategy shares fell 9.6% in the first complete trading session after MSCI proposed tighter index eligibility rules for companies whose assets are primarily investments, putting the bitcoin-heavy company’s benchmark membership under review. Broader market weakness also contributed to the decline.

Strategy held 848,250 Bitcoin (BTC), acquired at an average price of $75,444 per coin. Its bitcoin position remained roughly $5 billion above its cost basis. That gain applies to the company’s holdings, while the reported 9.6% drop was in its shares.

MARA and other mining companies also fell, despite not facing the same index-eligibility issue. Weakness across Nasdaq trading amid investor risk aversion accounted for part of the losses, making the decline broader than Strategy alone.

JPMorgan estimates that removing Strategy from the indexes could prompt about $2.8 billion in passive outflows from the company. MSCI is scheduled to publish its final removal list Nov. 11.