MSCI has officially taken action: After the market close on November 30, Strategy (MSTR) was removed from the MSCI USA, MSCI World, and ACWI indexes on the grounds that it is a “non-operating company” under new rules. It holds 850,364 BTC on its books, acquired for $64.16 billion at an average price of $75,456, while operating assets account for less than half of its total assets. JPMorgan estimates that passive funds will be forced to sell about $2.8 billion worth of shares; if other index providers follow suit, the total could reach $8.8 billion. Strategy argues that MSCI-tracking funds hold only 13 million shares, or 3.1% of the company—less than a day’s trading volume. To be clear: removal from an index does not mean delisting, and nobody is forcing the company to sell its coins. But for the first time, the “Bitcoin treasury company” model has been formally deemed ineligible by the mainstream financial system. MSTR closed Wednesday at $122.35, then fell 1.5% to $120.50 after hours. Also removed in the same batch were Japan’s Metaplanet and uranium miner Yellow Cake. #MSCI #Strategy