Updated Version 1 - Under the new regulations, Strategy faces the risk of being removed from the MSCI index, and tens of billions in passive investment holdings may be affected.

The update includes charts and stock price information.

Reuters, October 16 - Strategy MSTR.O, led by Michael Saylor, may be removed from the MSCI global stock indices due to new rules passed on Thursday, threatening billions of dollars in passive investments for this Bitcoin purchaser.

As the world’s largest corporate holder of Bitcoin and a constituent of both the MSCI USA Index and the MSCI World Index, Strategy saw its share price fall by 4.2% on Friday.

On Thursday, MSCI announced that as part of its November index review, non-operating companies will no longer be eligible for inclusion in its “Global Investable Market Indices” from the close of trading on November 30. The agency will announce the final list of affected companies on November 11.

This decision stems from a review launched by MSCI a year ago (link), when MSCI proposed excluding digital asset holding companies on the grounds that they resembled investment funds already excluded from the indices. MSCI (link) postponed the plan in January and expanded its review to include all non-operating companies.

MSCI defines non-operating companies as investment funds, business development companies, and companies that appear to fall into these categories due to their financial situation.

Both Strategy and Japan’s Metaplanet 3350.T have been placed on MSCI’s potential exclusion list. SharpLink SBET.O and several other crypto financial firms have been put on the watch list and may be excluded.

https://www.reuters.com/graphics/STRATEGY-SHARE/zjpqldkjavx/chart.png

This adjustment aims to expand MSCI’s exclusion criteria for passive investment instruments; companies must meet its financial tests for operating assets to remain eligible for inclusion.

For companies such as Strategy, being included in the indices is crucial, as passive funds and other benchmark-tracking investors are required to hold their shares.

Strategy has not yet responded to a Reuters request for comment.

The company warned last year that if excluded, $2.8 billion of its stock would be liquidated (link), which would have a “chilling effect” on the entire industry.

Strategy pioneered the approach of raising funds through stock and bond sales to purchase Bitcoin; last Friday its market capitalization was about $6.43 billion. In 2026, its share price fell by 4.8%.

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