MSCI Drops Strategy From Its US Index: Will $2.8 Billion in Forced Selling Hit MSTR?

MSCI will remove Strategy, the biggest company holder of Bitcoin (BTC), from its MSCI USA Index at the close of November 30. The index giant confirmed the cut in its November review filing on Wednesday, setting up a forced exit for passive fund money.

Index funds do not choose their stocks. When a company leaves the index, they must sell. JPMorgan analysts estimated last year that removal could push about $2.8 billion of Strategy shares out of these funds. That figure was based on MSCI’s earlier proposal, not the final rule.

MSCI adopted a new test on October 15 . Companies without substantial operating assets now count as “non-operating” and lose eligibility for its global indexes.