MSCI’s new rules could squeeze Strategy’s Bitcoin buying machine
MSCI will apply new rules that could remove Strategy from its indexes after the Nov. 30 close, with affected companies announced Nov. 11. The rules target businesses deemed non-operating or investment-like, replacing an earlier threshold based on digital assets exceeding half of total assets. JPMorgan estimated removal could prompt $2.8 billion in passive MSTR selling, though commentators say the stock’s high trading volume may absorb it. A larger concern is that selling could reduce MSTR’s premium to its Bitcoin holdings, making it harder for Strategy to fund future Bitcoin purchases through share issuance. Strategy reported holding 848,250 BTC and buying only 250 BTC in the week ending Oct. 11, while repurchasing $192.4 million of preferred stock.
