MSCI Drops Strategy From USA Index, Effective Nov. 30 Close
MSTR sits 47% above its 52-week low of $81.81.
Summary
MSCI is pulling Strategy out of its USA Index and Metaplanet out of its Japan Small Cap Index, effective at the close of Nov. 30. The removals follow eligibility rules adopted last month that judge companies on operating assets and five financial measures — a framework that treats a bitcoin treasury as something other than an operating business. Michael Saylor and Phong Le called the proposed treatment of digital asset treasuries "discriminatory." The practical hit is passive money: index funds tracking the MSCI USA benchmark must sell MSTR by the Nov. 30 close, and the stock already slipped 2.6% after hours to $119.06. This lands on top of a rough stretch — Q3 BTC Yield turned negative at (11.9)% as stock sales funded dividends and buybacks, and the company is still leaning on its ATM to buy bitcoin. Watch the Nov. 30 close, when the rebalance selling actually hits the tape.
At the time of this announcement, MSTR was trading at $120.20 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $51.7B. The 52-week trading range was $81.81 to $239.24. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Binance News.