MSCI confirmed on November 11, 2026, that it will remove Strategy (formerly MicroStrategy, Nasdaq: MSTR) from its global equity benchmarks, including MSCI USA, MSCI World and MSCI ACWI. The changes will take effect after the market close on November 30.
The decision follows MSCI's new framework for non-operating companies, finalised on October 15 after a year-long review. The framework restricts eligibility for companies whose assets are predominantly investment holdings rather than operating businesses.
Although Strategy continues to operate an enterprise software business, that segment accounts for less than 1% of its total assets. Most of its balance sheet is linked to its Bitcoin treasury, which reportedly exceeds 850,364 BTC, acquired for approximately $64.16 billion.
Strategy reportedly failed at least four of the five financial ratio tests under MSCI's framework, including screens related to operating expenses and dependence on capital raising rather than operating revenue.
MSCI applied the exclusion directly because Strategy failed the eligibility criteria across both its 2024 and 2025 annual reporting periods, despite the usual two-year grace period for existing index constituents.
The review also removed Japan's Bitcoin treasury firm Metaplanet and UK uranium-holding company Yellow Cake.
The exclusion does not delist Strategy from Nasdaq or legally require it to sell its Bitcoin holdings.
Strategy estimates that passive funds tracking MSCI indexes hold approximately 13 million shares, equivalent to around 3.1% of its basic shares outstanding. JPMorgan previously estimated potential outflows from MSCI-tracking funds at approximately $2.8 billion.
The removal could increase the company's cost of raising capital. Strategy relies on issuing common and preferred shares to finance additional Bitcoin purchases, and weaker passive demand could put pressure on its share price.
Analysts have warned that similar exclusions by other major index providers, including S&P, FTSE Russell and Nasdaq, could potentially expose Strategy to another $8.8 billion in passive outflows.
The immediate market impact may be limited because MSCI announced the proposed framework in October and Strategy had already disclosed the expected exclusion in its third-quarter SEC filing.
Executive Chairman Michael Saylor has criticised the policy as discriminatory, arguing that the company's Bitcoin treasury strategy represents a legitimate business model.
Key takeaway: MSCI's decision creates a potential passive-fund selling overhang for Strategy and could make its Bitcoin accumulation strategy more expensive to finance. Further action by other major index providers remains a key risk.