MSCI Removes Strategy From Global Equity Indexes Under New Rules

MSCI will remove Strategy from its global equity indexes after markets close Nov. 30, a decision that may push passive funds tracking those benchmarks to adjust their holdings in the Bitcoin-focused company.

The removal follows eligibility rules MSCI adopted in October. The rules bar companies with characteristics similar to passive investment vehicles, including firms that fail financial tests measuring operating assets. MSCI confirmed the deletion in its November index review.

Strategy, the largest corporate holder of Bitcoin (BTC), has warned that its exclusion could lead to about $2.8 billion in stock liquidations. That figure is a potential sale estimate tied to the company’s removal, rather than a completed tally of fund transactions.

Strategy shares fell nearly 2% in extended trading Wednesday after the announcement. The exclusion places the company, whose stock has served as a public-market Bitcoin proxy, outside the indexes tracked by affected passive funds. The rules focus on distinguishing operating businesses from companies that resemble investment funds. The change is scheduled to take effect after markets close Nov. 30.