MSCI to Remove Strategy and Other Companies from Global Equity Indexes, Potentially Triggering Billions in Capital Outflows

TechFlow reported on November 12, citing Reuters, that global index provider MSCI has decided to remove bitcoin treasury company Strategy (MSTR) and other companies from its global equity indexes, saying their business characteristics more closely resemble investment funds than traditional operating companies.

MSCI had previously proposed excluding companies whose digital asset holdings account for 50% or more of total assets from its indexes. The adjustment also involves Japanese bitcoin treasury company Metaplanet and UK uranium investment company Yellow Cake, and is expected to take effect on December 1.

Strategy had previously warned that removal from the indexes could result in approximately $2.8 billion in stock sell-offs. JPMorgan Chase estimated that if other index providers take similar measures, potential outflows from Strategy shares could reach as high as $8.8 billion.

Source: TechFlow