MSCI will remove Bitcoin treasury company Strategy (MSTR) from its Global Investable Market Indexes at the Nov. 30 market close. The Nov. 11 review lists Strategy’s Class A shares for deletion from the MSCI USA Index. The rebalanced indexes take effect Dec. 1.
Strategy shares closed 1.06% higher at $122.35 on Nov. 11, before MSCI released its decision. The stock slipped to $121.91 in after-hours trading at 5:18 p.m. ET.
How Many Strategy Shares Index Funds Held
During MSCI’s consultation, Strategy estimated that funds tracking the affected indexes held about 13 million shares, or 3.1% of its basic shares outstanding. At the Nov. 11 closing price, that share count would be worth about $1.59 billion.
Strategy said in its Nov. 2 quarterly filing that it expected the removal. It warned that selling by index-tracking investors could reduce trading liquidity and make it harder to raise capital.
Why MSCI Is Dropping Strategy
MSCI checks for substantial operating assets and applies five financial tests to companies that fall short. Existing members face removal if they fail the financial screen in both of their two most recent annual filing periods. The final list names five other deletions under the rules, including Metaplanet and Upexi.
Strategy opposed the proposal, saying it reports its Bitcoin business as an operating segment under U.S. accounting standards. Its holdings reached 850,364 BTC after it spent $81.9 million to buy 1,036 BTC in the week through Nov. 8.
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