MSCI drops Strategy from global equity indexes on November 30
Strategy shares fell 1.65% in after-hours trading following the index provider decision.
The short version
- JPMorgan estimates the exclusion could trigger roughly $2.8 billion in selling from passive funds.
- Japan Metaplanet and Upexi are also marked for deletion on the final list.
Index provider MSCI has confirmed Bitcoin treasury company Strategy will be removed from its global equity indexes after the November 30 close, following months of debate over whether crypto treasury firms qualify as operating businesses. Strategy, Japan Metaplanet and crypto treasury company Upexi are marked for deletion in MSCI's final list of affected securities, while Ether treasury firm Sharplink is on a watchlist.
Strategy shares fell 1.65% in after-hours trading on Wednesday. The changes take effect under an implementation timetable MSCI announced in October. Removal could prompt funds tracking the affected benchmarks to sell the companies' shares, reducing a source of passive investment demand.
As Cointelegraph reported in October, JPMorgan previously estimated that Strategy's exclusion could trigger roughly $2.8 billion in selling. Strategy opposed the proposal, arguing that it repackaged MSCI's earlier effort to exclude digital asset treasury companies and injected policy judgments into index construction.
The company nevertheless played down the potential disruption, saying in its consultation response that MSCI-linked funds held approximately 13 million shares, representing 3.1% of its basic shares outstanding and less than one day's trading volume.
Figures as reported by Cointelegraph.
