Strategy pushes back on MSCI proposal over $2.8 billion MSTR selling risk
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Strategy pushed back against an MSCI proposal to remove it from major equity indexes and trigger an estimated $2.8 billion in passive selling of MSTR shares. MSCI opened a consultation this month on identifying 'non-operating companies,' and applying the proposed methodology to May 2026 data would have resulted in three deletions, including Strategy. MSTR shares fell about 2% in pre-market trading.
The MSCI Proposal
MSCI opened a consultation this month on proposed rules to identify non-operating companies through financial statements. Under the methodology, a company first faces a core screen measuring operating assets as a percentage of total assets; those below 50% move to a second stage of five financial tests. Applying the proposal to MSCI ACWI IMI using May 2026 data would have resulted in three deletions: Michael Saylor-led Strategy, Tokyo-listed Bitcoin holder Metaplanet, and London-listed uranium investor Yellow Cake.
Strategy's Response
Strategy rejected the premise of the proposal, arguing index providers should reflect markets rather than influence corporate asset allocation. The company said MSCI's proposal 'puts it out of step with regulators, markets, and its own customers' and added 'Bitcoin doesn't need MSCI. Neither does Strategy.' MSTR shares fell about 2% in pre-market trading following the news. JPMorgan previously estimated such an exclusion at about $2.8 billion in passive selling.
Methodology Details
The latest approach replaces a crypto-only rule MSCI abandoned in January, which would have excluded firms with digital assets at least 50% of total assets. Under the new five-test stage, inclusion flags include operating assets below 20% of total assets, operating expenses below 5%, negative operating cash flow, and non-operating fair-value changes above 5% of total assets. A capital-dependence test flags companies whose financing cash flow exceeds 20% of assets and whose filings show capital raising was used to accumulate assets. Triggering at least four of five flags after failing the core screen makes a company ineligible for the index, while existing constituents receive more room before deletion.
What's Next
MSCI will accept feedback on the proposal until Sept. 30, with a final index decision set for Oct. 16. It remains unclear whether Strategy will be deleted or whether the methodology will be revised after market feedback, and analysts warn the exclusion could trigger $2.8 billion in passive selling.
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Strategy pushes back on MSCI proposal over $2.8 billion MSTR selling risk
