MicroStrategy Could Be Removed From Major Global Stock Indexes
Michael Saylor’s Bitcoin giant could lose its place in major global stock indexes, potentially forcing investment funds to sell shares even if they still believe in the company. On Thursday, MSCI approved new rules to remove companies that behave more like investment vehicles than operating businesses. Its earlier simulation identified Strategy, formerly MicroStrategy, and Japan’s The post…
MSCI has approved new rules to remove companies that behave more like investment vehicles than operating businesses, which could force MicroStrategy (formerly Strategy) out of major global stock indexes. Index funds tracking those benchmarks would then be required to sell the shares, creating mechanical selling pressure regardless of whether they still believe in the company. As the largest corporate holder of Bitcoin, a forced unwind of MicroStrategy's index membership could weigh on both its stock and BTC sentiment.
