{"id":31411,"date":"2026-10-16T22:44:55","date_gmt":"2026-10-16T22:44:55","guid":{"rendered":"https:\/\/pettysackingforum.com\/?p=31411"},"modified":"2026-10-16T22:44:55","modified_gmt":"2026-10-16T22:44:55","slug":"strategy-stock-mstr-falls-as-msci-index-exclusion-threatens-passive-investments","status":"publish","type":"post","link":"https:\/\/pettysackingforum.com\/?p=31411","title":{"rendered":"Strategy stock (MSTR) falls as MSCI index exclusion threatens passive investments"},"content":{"rendered":"
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Strategy (formerly known as MicroStrategy) stock (MSTR) fell on Friday as investors assessed the potential removal of the Bitcoin treasury company from MSCI’s global equity indexes, despite a rise in Bitcoin prices. <\/p>\n

The company also announced plans to maintain a 12% annualised dividend rate on its STRC preferred stock for November, subject to shareholder approval and related amendments taking effect.<\/p>\n

Strategy shares declined 6% on Friday, while Bitcoin traded around $82,290, having gained more than 1.3% over the previous 24 hours.<\/p>\n

Strategy, led by Michael Saylor, is the world’s largest corporate Bitcoin holder, with 848,250 BTC.<\/p>\n

The stock’s decline highlights how factors beyond cryptocurrency prices, including index inclusion and financing costs, can influence investor sentiment towards the company.<\/p>\n

MSCI rules put Strategy’s index inclusion at risk<\/h2>\n

MSCI said on Thursday that non-operating companies would be ineligible for its Global Investable Market Indexes from the close of November 30. <\/p>\n

The index provider plans to publish the final list of affected companies on November 11.<\/p>\n

Strategy and Japan’s Metaplanet are among the companies potentially facing removal. <\/p>\n

SharpLink and several other cryptocurrency treasury companies are on a watchlist for possible exclusion.<\/p>\n

The policy follows a review that MSCI began last year into whether digital asset treasury companies resemble investment funds, which are already excluded from its indexes. <\/p>\n

MSCI deferred its original proposal in January before broadening the review to cover non-operating companies more generally.<\/p>\n

The potential exclusion matters because passive funds tracking MSCI benchmarks are required to hold constituent stocks. <\/p>\n

Strategy previously warned that removal could lead to $2.8 billion worth of its shares being liquidated.<\/p>\n

Strategy has disputed MSCI’s proposed classification. In a statement on Friday, the company said, \u201cWe believe the proposal is misguided.\u201d<\/p>\n

Strategy also argued that MSCI’s distinction between operating and non-operating companies was undefined and lacked a basis in US GAAP, IFRS or recognised legal frameworks.<\/p>\n

The company said funds tracking MSCI’s Global Investable Market Indexes held just 3.1% of its outstanding shares, potentially limiting the direct impact of an exclusion.<\/p>\n

Strategy maintains 12% STRC dividend rate<\/h2>\n

Separately, Strategy’s board declared daily cash dividends on its STRC preferred stock for each calendar day in November, subject to shareholder approval and the effectiveness of related amendments.<\/p>\n

The annualised dividend rate will remain at 12%. <\/p>\n

Strategy said management would continue recommending that rate until STRC demonstrates \u201csustained, healthy trading near $100 per share.\u201d<\/p>\n

Payments are scheduled to begin on November 2, with each dividend payable on the business day following its record date, according to a regulatory filing.<\/p>\n

STRC is one of Strategy’s key fundraising instruments for Bitcoin purchases. <\/p>\n

Daily dividend payments could help make the preferred stock more attractive to investors and support trading around its $100 par value.<\/p>\n

STRC was down 0.2% at $99.33.<\/p>\n

Bitcoin purchases and financing strategy in focus<\/h2>\n

Strategy added 250 Bitcoin<\/a> for $21.5 million last week, bringing its total holdings to 848,250 BTC.<\/p>\n

During the week ending October 4, the company repurchased $176 million worth of STRC, spending more than six times as much on the buybacks as on its $28 million in Bitcoin purchases.<\/p>\n

The company introduced a capital framework on June 29 that allows it to sell Bitcoin to fund dividend payments. <\/p>\n

It also raised STRC’s annual dividend rate to 12% at the time.<\/p>\n

Strategy’s business model relies on raising capital through stock and debt sales to acquire Bitcoin. <\/p>\n

While that approach has made the company a major proxy for cryptocurrency exposure in equity markets, its shares remain sensitive to financing conditions and index-related developments.<\/p>\n

Index-related risks like MSCI\u2019s proposed exclusion are closely watched by traders who follow stock reactions through top online trading platforms<\/a>.<\/p>\n

The post Strategy stock (MSTR) falls as MSCI index exclusion threatens passive investments<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Strategy (formerly known as MicroStrategy) stock (MSTR) fell on Friday as investors assessed the potential removal of the Bitcoin treasury company from MSCI’s global equity indexes, despite a rise in Bitcoin prices. The company also announced plans to maintain a 12% annualised dividend rate on its STRC preferred stock for November, subject to shareholder approval […]<\/p>\n","protected":false},"author":1,"featured_media":31412,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[],"class_list":["post-31411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news"],"_links":{"self":[{"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/posts\/31411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31411"}],"version-history":[{"count":0,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/posts\/31411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=\/wp\/v2\/media\/31412"}],"wp:attachment":[{"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pettysackingforum.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}