MSCI to Remove Strategy From Its Indexes in December, With Outflows Estimated at Up to $8.8 Billion
Key Facts
MSCI announced the results of its November review on November 11, including the removal of Strategy from the MSCI USA and MSCI World indexes, with changes to take effect at the close on November 30, 2026. Reuters reported that the company’s removal from the two indexes will become effective on December 1. The decision ends its inclusion in indexes tracked by passive funds and investors who are required to hold listed constituents. Reuters said those investors are required to hold shares of companies included in the indexes, making the change relevant to investment flows into Strategy stock. But the removal announcement does not mean the change has already been implemented; it is scheduled to take effect at the end of November.
MSCI had announced in the results of its consultations on October 15 that rules for the eligibility of non-operating companies would be included in the November 2026 review, with changes taking effect at the close on November 30. Strategy objected to the proposal, saying its Bitcoin activity is recorded as an operating segment under U.S. accounting principles. The dispute reflects differing views on how to classify the company’s activity for index eligibility purposes, while the review concluded with its inclusion among the companies to be removed. The move does not make the Bitcoin held by the company subject to automatic sale; it concerns the stock’s eligibility for the indexes and any resulting actions by tracking funds. Strategy said funds linked to the MSCI Global Investable Market indexes own only 3.1% of its basic shares outstanding, and argued that this stake limits the potential direct impact of the removal.
MSCI’s methodology for non-operating companies involves an initial review of operating assets, followed by a test using five financial ratios that are not tied to any particular sector. The rule says a security is ineligible for inclusion if it fails four or more of the five ratios. For companies already in the index, removal occurs only if they fail the eligibility test in each of the two most recent annual reporting periods. This means the removal criteria include a defined financial threshold, with failure required to persist across the two most recent annual periods for current constituents. Strategy objected to the proposal based on its accounting characterization of its Bitcoin activity as an operating segment, while MSCI proceeded to announce the review results.
On the stock’s performance, Reuters said Strategy shares fell 2.5% in extended trading on Wednesday, November 11. EL7 market data for regular trading show the stock closing at $122.35 on November 11, compared with $121.07 on November 10, meaning the close was higher than in the previous session. This puts the extended-trading move in context, without establishing that the MSCI decision was the direct cause of the stock’s movement during the regular session. From the start of 2026 through November 11, Strategy shares fell about 20%, while Bitcoin declined 15% over the same period, according to Reuters. The comparison shows that the stock posted a larger decline than the cryptocurrency over the period cited, without these figures alone identifying the reasons for the difference.
Strategy had warned the previous year that its removal could trigger the liquidation of $2.8 billion in shares, Reuters reported. JPMorgan had previously estimated that MSCI changes could prompt outflows from the stock of as much as $8.8 billion if other index providers followed suit. These figures remain estimates and warnings tied to the possibility of share sales by index-tracking entities, rather than an announcement that sales have already taken place. A stock’s removal from an index also does not mean the company will sell its Bitcoin assets; the mechanism described by Reuters concerns funds’ and investors’ holdings of shares in companies included in the indexes. The changes from the November review will take effect at the close on November 30, before the removal from the MSCI USA and MSCI World indexes becomes effective on December 1.