Zhitong Finance App learned that recently, MSCI Inc. passed new rules, which may eventually remove Strategy Inc. (MSTR.US) from its global stock benchmark index. This move could trigger a multi-billion dollar stock sell-off and add new pressure to the financing model behind Michael Saylor's huge Bitcoin holdings.
The indexing agency said on Thursday that it would exclude companies classified as non-operating businesses under a new framework that came into effect when trading closed on November 30. Although the decision would not immediately remove Strategy from its benchmark index, it established a series of financial testing criteria that, if not met, would disqualify the company from being included in the MSCI Global Equities Index.
“MSCI will implement this proposal to define and classify non-operating companies as not eligible for inclusion in the MSCI Global Investable Markets Index. The details are described in the consultation document published on August 3, 2026, with minor revisions,” the index's compilers said in a statement. The index's compilers stated that existing constituent stocks must fail multiple financial tests before they can be removed.
Strategy shares once fell nearly 4% in after-hours trading. The company did not immediately respond to requests for comment.
According to analysis, once finally eliminated, it will severely disrupt the cryptocurrency reserve model pioneered by this former enterprise software company: companies raise capital from the capital market and accumulate large amounts of cryptocurrencies by issuing additional common shares, issuing bonds, and issuing complex securities.
The most critical effect is that removing the index will reduce the stock's investor base, thereby suppressing the stock price. J.P. Morgan Chase estimated last year that if MSCI removed it, it would trigger a sell-off of up to 2.8 billion US dollars in Strategy stocks; if other indices follow suit and adjust, the sell-off scale could further increase to 8.8 billion US dollars.
“For companies like Strategy, being included in the index is important because it provides a kind of programmatic passive buying — whether it's weekly 401 (k) pensions flowing into the stock market or mutual fund funds,” said Brian Dobson, managing director of Clear Street Disruptive Technology Research. “If a company is removed from the index, stocks will experience some short-term selling pressure as people who track the index close their positions.”
The total value of Bitcoin held by Strategy is close to $70 billion. Right now, investors who want to participate in this innovative financing model have already cooled down their demand for the company's various securities.
Saylor initially relied on issuing common shares at a premium higher than the holding value of cryptocurrency assets, driving exponential expansion of the company's size and making it the world's largest digital asset reserve company. However, as the market worried about the dilution of equity, this premium gradually disappeared. Saylor then switched to issuing preferred shares, and now market demand for preferred shares is also weakening. Recently, Strategy requested investors to approve a bill to adjust preferred stock dividends to be paid on a daily basis.
Alexander Blume, CEO of Two Prime, an asset management company focused on Bitcoin, said, “It will become more difficult for subsequent companies to issue additional shares and maintain a complete Bitcoin acquisition funding machine. This incident also shows that this type of digital asset reserve company is not regarded as a physical business. I'm not surprised that some leading mainstream indices are reluctant to allow clients to be exposed to such volatile assets.”
Saylor himself was not convinced by any of MSCI's potential moves. In an interview earlier this week, he said the index provider — which he called the capital it controls “insignificant” — was “imposing biased values on digital assets.” He called the potential decision a “value judgment,” setting a bad precedent.