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Why Strategy Stock Plunged on Friday

MSCI has confirmed rules that could remove Strategy from its global indexes, and the bitcoin-holding software company's shares slipped in premarket trading today. The final list of affected companies is not due until November.

Strategy (NASDAQ: MSTR) shares are down around 9.1% today after index provider MSCI confirmed rules that could remove the company from its global indexes. Strategy, formerly MicroStrategy, sells business intelligence software and holds a large bitcoin treasury.

MSTR.US

MSCI published its consultation result at 9:48pm in London yesterday, after the US close. It will make “non-operating companies”, meaning firms that mostly hold investments, ineligible for its indexes. The plan is the August proposal with minor modifications. A screen of five financial ratios decides it, and four or more flags means ineligible.

The MSCI release itself names no companies. A test run using May 2026 data flagged Strategy, Metaplanet and Yellow Cake for possible removal from the ACWI Investable Market Index.

Index funds copy an index mechanically, so they must sell a stock that is dropped. JPMorgan analysts estimated about $2.8bn of outflows from MSTR, but that figure dates from November 2025 and predates the final rules.

Strategy told MSCI in its consultation response that “we believe the proposal is misguided.” It estimates MSCI-linked funds hold about 13m shares, 3.1% of basic shares outstanding, less than a typical day’s trading volume. Exclusion would not delist the stock or force a bitcoin sale.

Current constituents will be removed only if they fail the ineligibility screen in each of the two most recent annual filing periods.

MSCI, index provider

The final list of affected companies is due on the 11th of November, and the change takes effect at the close of the 30th of November.

Asktraders News Team
Asktraders News Team
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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.

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