MSCI approved a new rule on Oct. 15 that would exclude companies classified as engaged in "non-operating business" from its Global Investable Market Indexes, with the change set to take effect after the close on Nov. 30. Under the new framework, Strategy Inc., the company associated with Michael Saylor, has been identified as a potential deletion candidate. Japan-based bitcoin treasury company Metaplanet was also named. The final list of affected companies is expected on Nov. 11.
JPMorgan previously estimated that if Strategy is removed, the stock could face about $2.8 billion in selling pressure. Funds tracking MSCI indexes hold roughly 3.1% of Strategy's free float, according to the report. The new rule includes a buffer mechanism, meaning existing constituents would need to fail the criteria for two consecutive review periods before being deleted. Strategy shares fell nearly 4% in after-hours trading. Bloomberg was cited as the source.
MSCI approved a new rule on Oct. 15 that will exclude companies classified as engaged in "non-operating business" from its Global Investable Market Indexes. The rule will take effect after the close on Nov. 30.
Strategy and Metaplanet named as potential deletions
Under the new policy, Strategy Inc., the company tied to Michael Saylor, was identified as a potential removal candidate. Japan's bitcoin treasury company Metaplanet was also named. The final list of affected companies is expected to be released on Nov. 11.
JPMorgan estimates possible selling pressure
JPMorgan previously estimated that if Strategy is removed, the stock could face about $2.8 billion in selling pressure. Funds tracking MSCI indexes hold around 3.1% of Strategy's free float.
The new rule also includes a buffer mechanism. Existing index constituents would only be removed after failing to meet the criteria for two consecutive review periods. Strategy shares fell nearly 4% in after-hours trading.
Bloomberg was cited as the source of the report.
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