Strategy stock declines 6.4% as new MSCI rules could trigger passive index fund selling

Odaily report: According to MSX.COM data, Strategy (MSTR) extended its decline to 6.46%, now trading at $141.5.

On the news front, MSCI plans to screen out companies whose asset structures are closer to investment funds rather than traditional operating businesses, based on the proportion of operating assets and various financial indicators. As Strategy holds a large amount of Bitcoin, it has been listed as a potential candidate for index removal, with the final affected list expected to be announced on November 11.

The market is concerned that if Strategy is removed from MSCI-related indices, passive funds tracking the indices may be forced to reduce their MSTR holdings, with potential selling pressure reaching billions of dollars, which could impact the company's strategy of continuously accumulating Bitcoin through equity financing.