Bitcoin : MSCI’s new rules expose Strategy to exclusion

The bitcoin market faces a new challenge that goes beyond price fluctuations. Strategy, Michael Saylor’s company known for its substantial cryptocurrency reserves, risks losing its place in some major stock indices. On Thursday, MSCI approved new rules targeting companies whose activity resembles an investment vehicle rather than a traditional business. This decision could alter demand for Strategy shares and complicate its future purchases. MSCI constructs benchmark indices like MSCI World and MSCI Emerging Markets. Fund managers rely on these indices to select their investments, while index ETFs automatically track their changes. Therefore, a change in their composition can lead to buying or selling shares, independently of individual investors’ choices. The new rules target companies whose value relies mainly on holding assets rather than on traditional operational activity.

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