Strategy shares extended losses to 6.46% and traded at $141.5, according to data cited by Odaily. The move came as MSCI is considering new screening standards based on the share of operating assets and several financial indicators to filter out companies whose asset structures resemble investment funds more than traditional operating businesses. Because Strategy holds a large amount of Bitcoin, it has been identified as a company that could face removal from MSCI indexes under the proposed framework. The final list of affected companies is expected on Nov. 11. Investors are concerned that if Strategy is removed from related MSCI indexes, passive funds tracking those benchmarks may have to cut their MSTR holdings. Odaily said potential selling pressure could reach tens of billions of dollars, which could in turn affect the company’s strategy of continuing to buy more Bitcoin through equity financing.
Strategy (MSTR) fell 6.46% to $141.5, according to MSX.COM data cited by Odaily.
The stock move came as MSCI is proposing to use the proportion of operating assets and multiple financial indicators to screen out companies whose asset structures are closer to investment funds than to traditional operating businesses. Because Strategy holds a large amount of Bitcoin, it has been identified as a company being watched for possible index exclusion. The final list of affected names is expected to be released on Nov. 11.
Market concerns center on the possibility that if Strategy is removed from related MSCI indexes, passive funds tracking those benchmarks could be forced to reduce MSTR holdings. Odaily said the potential selling pressure could reach tens of billions of dollars and may affect the company’s strategy of continuing to increase its Bitcoin holdings through equity financing.
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