MSCI has confirmed the removal of Michael Saylor’s Strategy from its equity indexes as part of its November 2026 review, raising concerns that billions of dollars in potential stock sales could affect the company’s ability to continue buying Bitcoin.
Summary
- MSCI has confirmed Strategy’s removal from its equity indexes as part of its November 2026 review, with the changes taking effect after November 30.
- JPMorgan previously estimated that Strategy’s exclusion could trigger $2.8 billion in stock outflows, potentially reaching $8.8 billion if other index providers follow.
- The potential selling pressure concerns MSTR shares, but weaker stock demand could make it harder for Strategy to raise capital for future Bitcoin purchases.
- Bitcoin could face additional pressure if corporate treasury purchases slow while US spot Bitcoin ETFs continue to record investor withdrawals.
According to MSCI’s November 11 announcement, the index provider has finalized the companies affected by its new non-operating companies methodology, with the changes scheduled to take effect after the November 30 market close.
Strategy and Japan’s Metaplanet are among the affected companies, alongside UK-based uranium investor Yellow Cake, according to Reuters.
The decision could put additional pressure on Strategy’s shares as passive investment funds prepare to adjust their portfolios. Strategy has previously estimated that exclusion could lead to billions of dollars in MSTR selling, although the eventual impact will depend on how investors respond before the deadline.
Strategy faces billions in potential stock selling
Strategy’s removal follows MSCI’s October decision to exclude companies whose financial characteristics resemble investment funds rather than conventional operating businesses.
The revised eligibility rules examine whether companies have substantial operating assets before applying five financial ratio tests. Companies that fail the initial assessment and trigger at least four of the five ratios become ineligible.
Existing index members must fail the screening across their two most recent annual filing periods before removal.
As crypto.news previously reported, Strategy estimated that funds tracking the relevant MSCI indexes held approximately 13 million MSTR shares, representing 3.1% of its basic shares outstanding.
Those holdings were worth approximately $1.57 billion at Tuesday’s closing price, although JPMorgan previously estimated that the company’s exclusion could trigger as much as $2.8 billion in outflows.
The investment bank has warned that potential selling could reach $8.8 billion if other major index providers adopt similar restrictions.
Strategy shares fell approximately 2.5% in extended trading following Wednesday’s announcement, according to Reuters.
Could MSCI’s decision affect Bitcoin purchases?
The immediate selling pressure concerns Strategy’s shares, not the Bitcoin held on its balance sheet. Still, the company’s reliance on equity financing creates another concern for investors.
Strategy has regularly issued common and preferred shares to raise money for Bitcoin purchases, allowing it to accumulate more cryptocurrency without relying entirely on operating revenue.
A sustained decline in MSTR shares could make future fundraising less attractive, potentially limiting how much capital the company can deploy toward additional Bitcoin acquisitions.
The company has continued buying despite recent market weakness.
Its latest Bitcoin purchase involved 1,036 BTC acquired for $81.9 million between November 2 and November 8, bringing total holdings to 850,364 BTC.
Strategy funded the purchase and a separate $188.3 million repurchase of STRC preferred shares through common stock sales.
The transactions show how the company continues to divide its available financing between expanding its Bitcoin holdings and managing its existing capital obligations.
Earlier in September, Strategy paused Bitcoin purchases for two consecutive weeks while spending $139.3 million to repurchase preferred shares.
Such decisions could become more frequent if weaker investor demand makes raising new equity capital increasingly expensive.
Bitcoin faces pressure from multiple sources
The potential slowdown in corporate purchases arrives during an already difficult period for Bitcoin.
The cryptocurrency has struggled to recover above $75,000 amid continued withdrawals from US spot Bitcoin exchange-traded funds and weaker demand across cryptocurrency markets.
US spot Bitcoin ETFs recorded approximately $1.28 billion in net withdrawals during the first week of November, followed by another $201 million on November 9.
The recent ETF withdrawals have reduced another source of institutional demand at a time when corporate treasury companies remain important buyers.
An October 30 Bitfinex analysis found that 180 publicly listed companies collectively held approximately 1.3 million BTC, with Strategy accounting for nearly two-thirds of those holdings.
The Bitfinex assessment questioned whether demand for preferred shares could weaken the financing available for future corporate Bitcoin purchases.
Meanwhile, MSCI’s revised methodology will replace the temporary restrictions previously imposed on companies whose digital asset holdings represented at least 50% of total assets.
The index provider confirmed that its November review will remove those interim restrictions and assess affected companies under the new financial screening framework.
