Strategy Made $19.5 Billion in Profit. So Why Is MSCI Removing It From Stock Indexes?
MSCI plans to remove Strategy’s MSTR shares from the MSCI USA Index after November 30, also excluding them from broader indexes such as MSCI World. Index-tracking funds may consequently sell shares, though the decision does not affect Strategy’s Nasdaq listing or require it to sell Bitcoin. MSCI’s new rules target companies viewed primarily as investment vehicles; Strategy disputes the classification, arguing that its Bitcoin treasury and related activities constitute an operating business. The company’s reported $19.53 billion quarterly profit largely reflected unrealized Bitcoin valuation gains, while software revenue was $125.4 million. Strategy estimates index-linked funds hold about 3.1% of its common shares. Any share-price pressure could make it harder to raise capital for Bitcoin purchases, but the exclusion does not ensure reduced buying or Bitcoin sales.
