MSCI Adopts Rules That Could Exclude Strategy Inc
MSCI Inc. introduced new index rules that may exclude Strategy Inc. from global equity benchmarks, potentially triggering billions in stock sales.
Index provider MSCI Inc. adopted new rules on Thursday that establish a framework for excluding companies classified as non-operating businesses from its global equity benchmarks. The new guidelines, which take effect November 30, introduce financial tests to determine eligibility for inclusion.
While Strategy Inc. has not been immediately removed, the new criteria could render the company ineligible. An exit from the index would likely trigger billions of dollars in stock sales by passive funds that track MSCI benchmarks.
Such a divestment would place significant pressure on the financing model used by Michael Saylor to maintain the extensive Bitcoin holdings of Strategy Inc.
