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MSCI to drop Strategy from global indexes, putting billions in passive fund inflows at risk - Finance news and analysis from Global Banking & Finance Review
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MSCI to drop Strategy from global indexes, putting billions in passive fund inflows at risk

Published by Global Banking & Finance Review

Posted on November 11, 2026

1 min read

· Last updated: November 11, 2026

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MSCI Removes Strategy from Global Indexes; Passive Inflows at Risk

MSCI Index Changes and Impact on Investment Flows

MSCI's Decision to Remove Strategy and Other Companies

Nov 11 (Reuters) - Index operator MSCI will remove Michael Saylor's Strategy and other companies from its global indexes after determining they more closely resemble investment funds, a move that could curb passive investment flows into the stocks.

Background on MSCI's Exclusion Criteria

MSCI last year proposed to exclude digital asset treasury companies whose holdings represent 50% or more of their total assets and then launched a broader review into what it called "non-operating companies". Such companies have fund type characteristics, which are excluded from its benchmarks, it added.

Market Reaction and Performance

Strategy's shares fell 0.8% in extended trading on Wednesday. They have slid around 20% this year, while bitcoin prices are down 15%.

Reporting Credits

(Reporting by Johann M Cherian and Pritam Biswas in Bengaluru and Elizabeth Howcroft in London; Editing by Shilpi Majumdar, Sriraj Kalluvila and Leroy Leo)

Key Takeaways

  • MSCI finalized new eligibility criteria in October 2026 that exclude companies whose assets are primarily non‑operating (e.g., mainly digital asset holdings) from its Global Investable Market Indexes; the change takes effect after market close on November 30, with a final list of affected firms published on November 11 2026.(coindesk.com)
  • Strategy is expected to be excluded and, as of November 11, MSCI’s final list will confirm this; passive index funds holding its shares—estimated at roughly 3.1% of its basic shares outstanding—would be forced to sell, threatening around $2.8 billion in outflows from MSCI trackers alone.(econotimes.com)
  • Michael Saylor has criticized MSCI’s move as discriminatory toward digital‑asset treasury companies, emphasizing that Strategy operates a software business; analysts warn that index‑linked forced selling and pressure on liquidity could significantly impact the stock amid its recent discount to Bitcoin NAV.(qz.com)

References

Frequently Asked Questions

Why is MSCI removing Strategy from its global indexes?
MSCI determined Strategy and similar companies more closely resemble investment funds due to their high digital asset holdings, prompting their removal from benchmarks.
How could MSCI’s decision affect passive fund inflows?
The removal of Strategy and similar companies from MSCI indexes could curb passive investment flows into those stocks, potentially impacting their market performance.
What criteria did MSCI use for removing companies from indexes?
MSCI proposed excluding companies whose digital asset holdings make up 50% or more of total assets, and reviewed firms with fund-like characteristics.
How have Strategy shares performed recently?
Strategy shares fell 0.8% in extended trading on Wednesday and have declined around 20% this year.
Are other companies impacted besides Strategy?
Yes, MSCI's decision applies to other digital asset treasury companies with similar characteristics as Strategy.

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