Digital Finance & Tokenization▼
MSCI Weighs Removing Strategy From Indexes, Threatening Saylor's Funding
MSCI is considering new rules that could remove Michael Saylor's Strategy Inc. from its global equity indexes, reviving a threat to the company's financing model for its vast Bitcoin holdings. The proposal, part of a consultation seeking feedback through September, would exclude companies primarily engaged in accumulating assets rather than operating businesses, and applying it as of May would have removed Strategy, Metaplanet Inc., and Yellow Cake Plc. Strategy's shares have jumped over 35% in the past week as Bitcoin climbed above $80,000, but they remain down roughly 60% over the past year. The potential index removal could shrink the pool of investors required to own the stock, adding pressure to a capital structure already strained by shareholder dilution concerns. MSCI plans to announce the consultation results in October.