MicroStrategy Could Be Removed From Major Global Stock Indexes

Michael Saylor’s Bitcoin giant could lose its place in major global stock indexes, potentially forcing investment funds to sell shares even if they still believe in the company.

On Thursday, MSCI approved new rules to remove companies that behave more like investment vehicles than operating businesses.

Its earlier simulation identified Strategy, formerly MicroStrategy, and Japan’s Bitcoin buyer Metaplanet as potential exclusions.

UK uranium holder Yellow Cake was also flagged, while Ethereum treasury firm SharpLink could enter a watchlist.

Why Does MSCI Want Strategy Out?

MSCI creates indexes such as MSCI World and MSCI Emerging Markets. Fund managers use these benchmarks to decide which shares to hold, and index-tracking ETFs automatically follow changes.

Its concern is straightforward: Should a company whose value comes mainly from holding assets such as Bitcoin be treated like a conventional operating business?

Strategy still sells software, but its Bitcoin holdings dominate its balance sheet. MSCI’s new test looks at operating assets, business cash flow, and reliance on external financing.

Strategy disputes that distinction.

“We believe the proposal is misguided,” it said in its response to MSCI.

Could This Trigger a Stock Sell-Off?

If Strategy is excluded, ETFs tracking the affected indexes would generally have to sell MSTR shares when they rebalance.

That creates selling pressure regardless of Bitcoin’s price or investors’ opinions about Strategy.

Strategy estimates MSCI-linked funds hold roughly 13 million shares, around 3.1% of its basic shares outstanding. It argues that is less than a typical day’s trading volume.

Other investors could absorb the sales, so a price decline is far from guaranteed.

MSTR actually rose 5.62% on Thursday, closing at $151.29. Crucially, that rally happened before MSCI’s announcement after the US market closed.

MSTR Price Chart on October 15. Source: Yahoo Finance

The longer-term risk is weaker demand for MSTR shares, which could make raising money for further Bitcoin purchases harder.

Exclusion would not delist MSTR from Nasdaq or require Strategy to sell Bitcoin.

MSCI will publish its affected-company list on November 11. The rules take effect after November 30, with existing constituents protected by a two-annual-filing test before removal.

Read the Original story MicroStrategy Could Be Removed From Major Global Stock Indexes by Mohammad Shahid at beincrypto.com

Source link

Visited 1 times, 1 visit(s) today

Related Article

Nvidia stock trims losses as chip sell-off eases amid AI financing concerns

Chip stocks pared losses Thursday after concerns over debt-heavy balance sheets triggered a broader AI-driven sell-off on Wall Street. The overall Tech (XLK) sector trimmed declines as investors rotated into defensive sectors and bought up Treasurys, pushing long-dated yields substantially lower. Shares of Nvidia (NVDA) and peer Advanced Micro Devices (AMD) fell roughly 1%, paring

The PNC Financial Services Group, Inc. Q3 2026 Earnings Call Summary

The PNC Financial Services Group, Inc. Q3 2026 Earnings Call Summary – Moby Strategic Execution and Market Expansion Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our #1 pick. Tap here. Performance was driven by robust client momentum

IBM Has Paid Dividends Since 1916. Here’s Why Retirees Should Pay Attention Now

Quick Read IBM’s $14.7B free cash flow covered dividends at a 42% payout ratio in 2025, but one-cent annual raises since 2020 deliver little real income growth. Cisco raised its dividend 2% backed by $14B in operating cash flow; Oracle froze its payout while burning cash on $28B in capital spending. Just released. Our analysts

Dell Stock Nosedives After Barclays Downgrade

This article first appeared on GuruFocus. Dell Technologies (NYSE:DELL) shares slid about 7% Thursday morning, extending Wednesday’s selloff after Barclays questioned whether AI-server demand can justify the stock’s rally. Barclays analyst Tim Long lowered Dell to Equal Weight from Overweight and cut his price target to $574 from $603. He also downgraded Hewlett Packard Enterprise

DraftKings Is Down 44% in 2026: Is DKNG Stock Dead Money or Due for a Bounce?

Quick Read DraftKings has cratered 44% in 2026 to $19.14 as exchange-based prediction markets steal sports betting share without the licensing costs that burden DKNG. Flutter stock’s 65% collapse dwarfs MGM’s softer 20% drop, exposing pure-play sportsbook operators as the hardest-hit names in gambling. Whether DraftKings’ share of betting handle stabilizes against exchange platforms is

Is American Airlines Stock’s Drop A Chance To Buy?

Image from Pixabay American Airlines (AAL) stock has lost 24.4% since July 16, against a 2.7% gain for the S&P 500. The carrier trails Delta and United on profit, and executives cut their 2026 earnings outlook again in July, citing higher fuel costs. Yet the airline is chasing higher-spending travelers with more premium seats. Investors

Paychex Builds Fortress of Steady Dividend Growth While Stock Struggles

Quick Read Paychex (PAYX) raised its quarterly dividend 10% to $1.19, delivering a 4.4% yield backed by $2.56B in operating cash flow that covers payouts at a 63% ratio. ADP pairs big dividends with buybacks, while Paycom funds $345M in repurchases with new debt, making Paychex the only one centering capital returns on dividend growth.

Why CoreWeave stock panic matters to Nvidia, explained in under 30 seconds

Nvidia (NVDA) CEO Jensen Huang is unlikely to ignore the building pressure on CoreWeave’s (CRWV) stock price and bond values. The simple reason why is that he can’t look the other way given how intertwined Nvidia is with the most well-known — and debated — neocloud. For one, in January of this year Nvidia announced

Warburg Pincus CEO Says Investors See Public Markets as One Big Bet

Oura IPO oversubscribed Wall Street stock market trading floor. Photo by BeInCrypto Warburg Pincus CEO Jeffrey Perlman, whose private equity firm backs more than 200 portfolio companies, says investors see public markets as one concentrated, correlated bet. He argues that pushes capital toward private assets. The pitch comes from a firm that calls the initial

AI stocks drop after hot inflation report bolsters bets for Fed rate hikes

New York —  High-flying technology stocks are taking a bruising this week, as investors grow more skeptical about whether the AI boom will live up to expectations. Stocks dropped on Wednesday, led by declines in the tech sector, after a hotter-than-expected inflation report bolstered bets that the Federal Reserve will raise interest rates further. The S&P

0
Would love your thoughts, please comment.x
()
x