MSCI Set to Drop Strategy From Global Indexes, $2.8B in Forced Selling at Stake
MSTR sits 48% above its 52-week low of $81.81 on light trading volume (0.1× avg).
Summary
MSCI is expected to exclude Strategy's Class A common stock from its Global Investable Market Indexes, with a final ruling due today. JPMorgan estimates the removal could force roughly $2.8 billion in passive fund selling. MSCI reportedly plans to label Strategy and Metaplanet 'non-operating companies' because of their heavy crypto holdings, which would push index-tracking funds to dump the shares. The stock is already down about 28% from its early-October high near $170, trading around $122.50 premarket, and sits below all four major EMAs with RSI near 37. This lands after the Q3 10-Q showed BTC Yield turned negative at (11.9)% as stock sales funded dividends and buybacks, and after Peter Schiff renewed criticism of dilution from Saylor's share issuance. Watch the $118-$120 support zone; a break there opens the $100 level the headline flags.
At the time of this announcement, MSTR was trading at $120.98 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $51.1B. 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: Benzinga.