MSCI Drops Michael Saylor’s Strategy (MSTR): Is Bitcoin Price at Risk?

Index provider MSCI said on Wednesday, November 11, that it will remove Strategy (MSTR) from its global stock indexes. Strategy is the largest corporate holder of Bitcoin, and the change takes effect after the market close on November 30. Funds that track those indexes will have to sell their shares.

The MSTR MSCI index decision hit the stock first. MSTR closed Wednesday at $122.35. On Hyperliquid, where a contract tracking the stock trades around the clock, it is at $117.09 on Thursday morning, down 4.3% and at its lowest since August 23.

Bitcoin barely moved. It trades at $73,540 on Binance, down 0.4% in 24 hours. Japan's Metaplanet, which is also being removed, is down 3.4% since Tuesday.

So why did MSCI drop Strategy, how much selling could follow, and what does it mean for Bitcoin?

MSTR MSCI Index Exit: Why MSCI Dropped Strategy

MSCI decided that Strategy looks more like a fund holding Bitcoin than a company running a business. Strategy still sells software, but nearly all of its value comes from its 850,364 BTC, about 4% of all Bitcoin that will ever exist.

The decision is the first under a new MSCI rule for "non-operating companies". The rule first checks whether a company has substantial operating assets. Companies that fail face five financial tests, and failing four of them can make a company ineligible.