MSCI Rules on Strategy Today as $2.8 Billion in Forced Selling Hangs in the Balance

Crypto News

MSCI Rules on Strategy Today as $2.8 Billion in Forced Selling Hangs in the Balance

Topics in article

Bitcoin

Strategy faces MSCI's final list of non-operating companies on Nov. 11, with its index seat at stake. JPMorgan analysts previously estimated an exclusion could trigger roughly $2.8 billion in selling from tracking funds. Bitcoin has slid alongside the stock.

Strategy (Nasdaq: MSTR) enters MSCI's final November review on Nov. 11 with its index membership on the line. MSCI said changes will take effect on Nov. 30.

MSCI's new rules target non-operating companies

The index provider finalized new rules on Oct. 15 that make "non-operating companies" ineligible for its Global Investable Market Indexes. The methodology replaces an interim restriction on firms whose digital asset holdings made up at least 50% of total assets.

MSCI screens companies on their operating assets and five financial ratios. A company that fails at least four of the five tests could be deemed ineligible. Current constituents are removed only if they fail in each of their two most recent annual filing periods.

Strategy, Metaplanet and Yellow Cake were flagged in a May 2026 simulation.

Billions in selling pressure are at stake

JPMorgan analysts previously estimated a Strategy exclusion could trigger roughly $2.8 billion in selling from MSCI-tracking funds. That figure was calculated against MSCI's earlier digital asset proposal, not the final rules. Strategy disclosed in August that funds tracking MSCI indexes held about 13 million of its shares, or 3.1% of basic shares outstanding.

The stock has already fallen. MSTR closed at $121.07 on Nov. 10, down from $145.16 on Oct. 28. Bitcoin is currently trading near $73,700.

Trader Kaleo argued that a removal may already be priced in. According to Kaleo: "The decision will have little fundamental impact on Bitcoin." He added that Strategy has shown it is willing to change metrics to raise capital without selling large amounts of BTC.

Strategy keeps buying

Strategy added 1,036 BTC last week, lifting its holdings to 850,364 BTC. It also spent $188.3 million to buy back STRC preferred shares, both funded by selling MSTR stock.

If Strategy lands on the removal list, index funds would need to rebalance around the Nov. 30 effective date. Removal would not affect Strategy's Nasdaq listing, but it would strip away a steady source of passive demand for the stock.

Source: Bitcoin News

Trading involves risk.

Author

PrimeXBT

Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...

Read author’s articles

Risk Disclaimer

Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.