Strategy Faces Nov. 11 MSCI Index Decision Over Bitcoin Holdings

Strategy, the Bitcoin treasury company led by Michael Saylor, faces a November 11 decision from index provider MSCI on whether it will remain in MSCI’s global equity indexes, according to DL News. Any removal would take effect after the November 30 market close.

MSCI adopted new eligibility rules on October 15 that first screen companies for substantial operating assets. Those that fail face five financial-ratio tests, with ineligibility triggered if at least four flags are raised. Existing index members are removed only if they fail the screen in both of their two most recent annual filing periods, though MSCI may also weigh the latest interim filing.

DL News reported that MSCI had previously flagged Strategy, Metaplanet and Upexi as potential exclusions under its methodology for non-operating companies, citing TradingView reporting. Sharplink, Ton Strategy Company, Solana Company and DeFi Development Corp. were placed on a watchlist for possible exclusion.

The financial stakes are significant. JPMorgan estimated in 2025 that exclusion from MSCI indexes could trigger up to $2.8 billion in sales of Strategy shares, Bloomberg reported, a figure that could rise to $8.8 billion if other index providers followed suit. Index exclusion would not itself force Strategy to sell its Bitcoin holdings, but it would require passive funds tracking the affected MSCI Global Investable Market Indexes to rebalance away from the stock.

Brian Dobson, managing director for disruptive technology research at Clear Street, told Bloomberg that index membership provides consistent buying pressure, including through weekly 401(k) contributions and mutual funds, and that removal can trigger short-term selling as index-tracking investors exit.

Separately, Strategy said on October 28 that shareholders approved amendments allowing daily dividends on four preferred-stock series, starting November 1 for STRC and January 1, 2027, for STRF, STRK and STRD, pending filing of the amended terms. That vote addresses preferred-dividend terms and does not affect the pending MSCI index decision.

Based on reporting by www.dlnews.com.