Overview
- MSCI published its November review on Wednesday and confirmed it will delete Strategy (MSTR) from MSCI global and USA indexes with the change effective after the close on Nov. 30.
- The decision applies a new asset-neutral 'non-operating company' test that checks operating-asset share and five financial ratios and removes firms that fail the screen across required filings.
- Index-tracking funds must adjust their portfolios when the deletion takes effect, and analysts have estimated roughly $2.8 billion of potential passive selling of MSTR shares although actual outflows will depend on fund exposures and trade execution.
- Strategy disputes MSCI’s classification, is asking shareholders to push back, and has continued to buy Bitcoin while holding about 850,364 BTC as of Nov. 8.
- Watch whether index trackers disclose actual rebalancing flows, how Strategy alters its equity financing or buy cadence, and whether other index providers adopt similar screens because those moves would deepen the market impact.