Shares of Strategy fell 3.5% in afternoon trading after MSCI proposed removing the company from its Global Investable Market Indexes. The proposed removal is part of a potential rule change affecting non-operating companies with large treasury asset holdings, a category that includes Strategy due to its massive Bitcoin reserves of roughly 840,400 BTC. A final decision is expected by October with changes planned for November 2026, and could force investment funds that track MSCI benchmarks to sell their shares. Adding to investor worries, a recent regulatory filing revealed the company sold 1,690 BTC, worth roughly $109 million, below its average cost basis to meet cash obligations and fund repurchases of its preferred shares. Bitcoin's price slipped below $63,000, continuing a recent downtrend since mid July, and because Strategy operates effectively as a leveraged proxy for Bitcoin, the combination of index exclusion risks, uncharacteristic Bitcoin sales, and declining spot prices drove heavy selling pressure. After the initial drop, the shares shed some of the losses and rose to $94.58, down 2.3% from the previous close.
MicroStrategy IncorporatedMSCI removal proposal and Bitcoin sales below cost basis to fund repurchases.
MSCI IncMSCI proposed rule change could affect its indexes, but the company itself is not directly impacted.
