MSCI Rules on Strategy Today and Billions in Forced Selling Hang on It

Strategy (Nasdaq: MSTR) heads into MSCI’s final November review list on Nov. 11 with its index seat on the line, and analysts are already gaming out what a removal could cost. The index provider finalized new rules on Oct. 15 that make “non-operating companies” ineligible for its Global Investable Market Indexes. The methodology replaces an interim restriction on firms whose digital asset holdings made up at least 50% of total assets, and it takes effect with the November index review. Under the framework, MSCI screens companies on their operating assets and five financial ratios. A company that fails at least four of the five tests could be deemed ineligible.

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