On November 11, global index provider MSCI announced the results of its November 2026 index review, deciding to remove MSTR from relevant indexes such as MSCI USA and MSCI World, with the adjustment taking effect after the close on November 30. MSCI stated that MSTR's business and asset structure more closely resemble an investment fund or a non-operating company rather than a traditional operating enterprise, and it therefore no longer meets the inclusion criteria for the relevant indexes.
For MSTR, the most direct impact of this adjustment is a potential reduction in passive investment capital. ETFs and index funds tracking MSCI indexes typically allocate assets according to index constituents; following MSTR's removal, relevant funds will need to sell their holdings around the effective date. MSTR previously warned that an exclusion by MSCI could trigger approximately $2.8 billion in stock sell-offs. JPMorgan also previously estimated that if other major index providers take similar measures, MSTR's potential capital outflows could reach $8.8 billion. However, this figure is a conditional estimate rather than a confirmed actual outflow.
Notably, being removed from MSCI indexes could impact Strategy's long-standing financing model. The company has consistently purchased Bitcoin through the issuance of common shares, preferred shares, and debt financing, with its stock valuation and market financing capabilities serving as an essential foundation for expanding its Bitcoin reserves. If the index exclusion leads to reduced institutional holdings and lower stock liquidity, the cost of raising capital through future share issuances could rise, thereby affecting the company's ability to continue increasing its Bitcoin holdings and potentially putting further downward pressure on its stock price.
