• MSCI plans to remove Strategy Inc. (NasdaqGS:MSTR) from the MSCI USA Index after revising its eligibility rules for constituents.
  • The index provider now excludes companies whose primary exposure comes from Bitcoin holdings rather than substantial operating assets.
  • Passive funds that track the MSCI USA Index are expected to sell Strategy shares once the deletion takes effect, driving index related outflows.
  • MSCI's decision to drop Strategy Inc. over its Bitcoin centric business model is important, but it should not dominate your whole thesis. We have also flagged 1 other big win for Strategy.

For readers looking to explore more ideas tied to digital assets and blockchain exposure, the next stop is 23 cryptocurrency and blockchain stocks.

Strategy operates as a bitcoin treasury company rather than a traditional software vendor, so its inclusion in broad equity benchmarks has hinged more on its digital asset holdings than on core operating activities within the US software industry.

Does the team leading Strategy have what it takes? See our full breakdown of the management team's track record and compensation.

How does MSCI’s removal intersect with Strategy’s latest earnings?

MSCI is cutting Strategy from the USA Index just as the business reported third quarter 2026 revenue of US$125.43 million and net income of US$19,532.97 million. That profit figure is extremely large relative to the top line, which underlines how much the Story depends on Bitcoin related gains rather than software driven earnings.

What do the finance leadership changes signal about Strategy’s direction?

CFO Andrew Kang is stepping down on November 5, 2026, with CEO Phong Le assuming principal financial officer duties through year end and long serving executive Reza Virasteh taking the Chief Financial Officer role from January 1, 2027. Splitting responsibilities between Bitcoin finance under Le and software under Virasteh formalizes the dual track model and may help investors separate treasury moves from core operations.

What should investors watch next to judge the impact of this news?

The key checkpoints are the end of November index rebalancing when MSCI’s deletion becomes effective and the first quarterly report after Virasteh becomes CFO in early 2027. Those events will show how large index linked outflows actually are and how clearly Strategy reports the split between Bitcoin driven results and software performance.

One big question on Strategy that this article has not touched

Everything you have read so far is backward looking. Analyst models already sketch out where Strategy might be a few years from now, and that forward map tells a very different story. See where analysts expect Strategy to be in a few years.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

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Bailey Pemberton

Bailey is an Equity Analyst at Simply Wall St with 4 years of experience as an Associate Adviser at Baywealth Financial Group, where he helped with client portfolio management, investment strategy and research. He completed a Bachelor of Commerce majoring in Finance from the University of Western Australia. As an equity analyst, Bailey provides the team with valuable insights, helping guide the creation of article content and new features like Narratives.

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