Business · Markets · 2 hrs ago
Strategy faces possible removal from MSCI indexes under new criteria
Strategy, the world’s largest corporate Bitcoin holder, may be removed from MSCI indexes under new eligibility rules.
MSCI adopted criteria on October 15 that exclude companies without substantial business operations from its Global Investable Market Indexes.
The criteria assess business assets and financial ratios to determine whether a company qualifies.
MSCI will announce the final list of companies facing removal on November 11, with changes taking effect after markets close on November 30.
Removal could put pressure on Strategy’s share price if funds that track MSCI indexes sell its stock.
A lower share price could make it harder to raise money by issuing shares to buy more Bitcoin.
The possible change matters because Strategy’s share issuance has been a way to fund additional Bitcoin purchases.
MSCI has adopted new criteria that could remove Strategy from its global investable market indexes.
The criteria apply to companies without substantive operating activities and assess eligibility using business-asset size and financial ratios.
MSCI will announce the final list of companies facing removal on November 11.
Any changes will take effect after market close on November 30.
Removal could put downward pressure on Strategy’s share price and complicate its plan to raise money by issuing shares to buy more bitcoin.
- Who
- Strategy, the world’s largest corporate bitcoin holder, could be affected by MSCI’s new criteria.
- What
- The company may be removed from MSCI indexes.
- When
- MSCI adopted the criteria on October 15; it will announce affected companies on November 11, with changes taking effect after market close on November 30.
- Where
- MSCI’s Global Investable Market Indexes.
- Why
- The new criteria exclude companies without substantive operating activities and assess eligibility using business-asset size and financial ratios.
This story does not have two clearly opposing sides.
MSCI adopted new criteria for excluding companies without substantive operating activities from its global investable market indexes.
MSCI is due to announce the final list of companies facing removal.
Index changes are due to take effect after market close.
- Company
- Strategy
- Index provider
- MSCI
- Criteria adopted
- October 15
- Final list announcement
- November 11
- Changes take effect
- November 30, after market close
- Potential impact
- Pressure on Strategy’s share price and its ability to raise funds for additional bitcoin purchases