As expected, MSCI is removing Strategy from its indexes.
On November 11, MSCI marked Strategy (MSTR) as "Deleted" from its indexes. Along with Strategy, Metaplanet and several other companies are also being removed because, under MSCI's new criteria, they look more like investment vehicles than traditional operating businesses.
https://www.reuters.com/business/msci-drop-strategy-global-indexes-putting-billions-passive-fund-inflows-risk-2026-11-11The removal will take effect after the market closes on November 30, but the market and the stocks have already started reacting. MSTR has dropped to $117.2, while STRC is still holding up. This could force index funds to sell their MSTR shares and put even more pressure on the stock price.
And besides, the problem is that index funds that are required to track MSCI indexes will have to sell their MSTR shares. JPMorgan previously estimated potential outflows at $2.8 billion, although they could turn out to be much higher...
The worst-case scenario in this situation would be if other index providers followed MSCI's example. Then the problem could become systemic for companies that accumulate cryptocurrencies on their balance sheets, and it wouldn't just be a problem for Strategy.
JPMorgan previously estimated additional potential outflows of $8.8 billion if similar restrictions were introduced by other index providers. So these are the kinds of problems that greed and losing control of the situation can lead to...
