Strategy Inc. (NASDAQ:MSTR) shares are trading lower Thursday after index provider MSCI Inc. (NYSE:MSCI) confirmed Wednesday that it will remove the company from its benchmark equity indexes as part of its November 2026 review.
- Strategy stock is feeling bearish pressure. What’s pressuring MSTR stock?
MSCI to Drop Strategy From Indexes, Risking Billions in Passive Outflows
According to Investing.com, the deletion removes Strategy’s Class A shares from the MSCI USA Large Cap Index, which threatens to trigger billions of dollars in outflows from passive funds that track the index. The change follows MSCI’s revised methodology for non-operating entities, which evaluates whether an issuer maintains substantial operating assets or fails a series of core financial screens across consecutive annual reporting periods.
Strategy has a total market capitalization of more than $40 billion and a float-adjusted value of $37.3 billion, and it is the largest constituent affected. The change takes effect at the close of Nov. 30. Strategy shares fell 2.4% in extended trading Wednesday after the confirmation.
Strategy Flagged Risk in October; MSCI Also Removed Other Bitcoin Holders
Management signaled the risk to investors in late October, noting in its third-quarter SEC filing that it anticipated an exclusion under MSCI’s tightened criteria. MSCI’s review also led to deletions for peers including Tokyo-listed Metaplanet and the UK’s Yellow Cake and placed nearly two dozen crypto- and holding-focused firms on an exclusion watchlist.
Strategy has accumulated more than $60 billion in bitcoin since mid-2020, and its purchases have relied heavily on selling common and preferred stock at a premium to net asset value, a mechanism that could face friction as index-tracking funds sell. Strategy shares have declined about 20% this year, compared with a 15% decline in bitcoin.
Strategy Shares Trade Lower
MSTR Price Action: At the time of publication, Strategy shares are trading 6.12% lower at $114.86, according to data from Benzinga Pro.
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