- MSCI will remove Michael Saylor’s Strategy from the MSCI USA index after the market close on November 30, 2026, following its November review.
- JPMorgan analysts estimated potential outflows of $2.8 billion, although their estimate was based on MSCI’s initial proposal rather than its final methodology.
- Japan’s Metaplanet will also be affected, with its shares set for removal from the MSCI Japan Small Cap index.
Index provider MSCI has published the results of its November review of the Global Standard Indexes, under which Michael Saylor’s Strategy will be removed from MSCI USA. The change will take effect after the market close on November 30, 2026.
The decision follows an MSCI methodology update that limits the inclusion of companies whose activities are predominantly investment-related. The changes also affect Japan’s Metaplanet, whose shares will be removed from MSCI Japan Small Cap.
Methodology change and Strategy’s response
MSCI proposed changing its approach to index construction in August 2026. The new criteria provide for an assessment of operating assets and five financial metrics. An existing constituent must fail to meet the requirements for the previous two reporting years before it can be removed.
Strategy said in September that the initiative was discriminatory, arbitrary and flawed. The company said MSCI was effectively seeking to exclude crypto treasury companies under the pretext of changing its general criteria.
Strategy also said removal would not have a material effect on its business. The company estimated that funds tracking MSCI indexes hold about 13 million MSTR shares, representing 3.1% of its total shares outstanding. It said that amount was smaller than the stock’s typical daily trading volume.
Analysts assess potential outflows
JPMorgan analysts estimated potential outflows from Strategy’s stock at $2.8 billion. They said total selling could reach $8.8 billion if other index providers take similar action. Those estimates were based on MSCI’s initial proposal rather than the final methodology.
BloFin Research analysts said on X that the main risk was a weakening of Strategy’s bitcoin accumulation model. They said lower passive demand for the stock could further compress the premium to the value of the company’s crypto reserves and make it more difficult to raise capital for additional asset purchases.
The Bull Theory analytics account also pointed to the possibility that index funds could be forced to sell as much as $2.8 billion of Strategy shares.
Removal from the index does not mean MSTR shares will be delisted from Nasdaq, nor does it require Strategy to sell bitcoin. The stated risk concerns a potential decline in demand for the stock from passive investment funds.
Source: Incrypted
