Strategy Faces MSCI Ouster Under New Rules, Billions in Passive Holdings at Risk
The index provider said non-operating companies will be ineligible from Nov. 30, putting Strategy and other crypto treasury firms at risk of deletion.
- On Thursday, MSCI adopted new rules that could remove Strategy from its global equity indexes, threatening billions of dollars in passive investment for the bitcoin buyer.
- The decision follows a year-long review of non-operating companies, which MSCI defines as investment funds or businesses whose finances resemble them, rendering them ineligible for its Global Investable Market Indexes.
- Shares of Strategy, the world's biggest corporate bitcoin holder, fell 2.7% in premarket trading on Friday from a market value of about $64.3 billion at Thursday's close.
- The company warned last year that an exclusion would result in $2.8 billion of its stock being liquidated and would "chill" the industry.
- MSCI will publish the final list of affected companies on November 11, with the new rules for non-operating companies taking effect from the close of November 30.
34 Articles
34 Articles
Strategy and Riot Fall 4%, Cipher Digital Declines 3% as MSCI Index Rules and Convertible Sale Weigh
The post Strategy and Riot Fall 4%, Cipher Digital Declines 3% as MSCI Index Rules and Convertible Sale Weigh appeared first on 24/7 Wall St.. An index decision and a fresh debt sale are pulling two crypto-linked names lower. Strategy (NASDAQ:MSTR) stock is down 4% to $145.50 during the morning session after an index rule change from MSCI (NYSE:MSCI). Meanwhile, Cipher Digital (NASDAQ:CIFR) stock is down 3% to $9.75 after pricing new convertible…
Strategy (NASDAQ: MSTR) Shares Plunge Nearly 10% After MSCI Index Exclusion Threat Hits Premium Hard
Strategy (NASDAQ: MSTR) closed down 9.56% at $136.83 on Friday, October 16, the first trading session after MSCI announced it would make non-operating companies ineligible for its Global Investable Market Indexes. The broader market added pressure to the decline, with the Nasdaq Composite losing 2.14% during a wider tech selloff, and MSTR carries a five-year […]
Strategy faces MSCI ouster under new rules, billions in passive ...
MSCI Decision Moves Michael Saylor’s Strategy Toward Index Exit
MSCI Inc. adopted new rules that could ultimately push Strategy Inc. out of its global equity benchmarks, potentially triggering billions of dollars in stock sales and adding fresh pressure to the financing model behind Michael Saylor’s vast Bitcoin holdings.
MSCI published last week the results of a long consultation with institutional finance to determine whether or not to keep in MSCI indices the actions of so-called "non-operational" companies. The result is therefore negative for this type of company and Strategy, the world's leading holder of bitcoin, is on the list of potential exclusions. Here's Vincent Ganne's analysis on the situation. L'article Action Strategy (MSTR): Here are the 2 major …
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