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Strategy generated 19.53 billion dollars in profits last quarter. Yet, MSCI plans to remove MSTR from several major stock indices as of November 30. This decision reignites the debate on the nature of Michael Saylor’s company: operational company or investment vehicle focused on bitcoin? Beyond this disagreement, the consequences could affect index funds and the stock’s visibility among institutional investors. This distinction now goes beyond just a financial technical question.
In brief
- MSCI plans to remove Strategy from the MSCI USA index after market close on November 30.
- The exclusion also concerns the MSCI World and MSCI All Country World indices.
- The disagreement concerns Strategy’s status: operational company or bitcoin investment vehicle.
- Despite this decision, Strategy retains its 850,364 BTC and continues buying bitcoin.
An exclusion from indices, not from the stock exchange
In its November analysis, MSCI plans to remove the Strategy A stock, listed under MSTR, from the MSCI USA index after the close on November 30. The measure also affects international indices, including U.S. stocks. Among them are the MSCI World and MSCI All Country World. The stock will remain listed on Nasdaq, and the company will continue its activities.
This decision does not force the company to sell its bitcoins. It concerns indices that some funds use to compose their portfolios. Thus, an ETF replicating the MSCI USA will normally have to sell its MSTR shares after their removal. This sale may occur even if its manager disputes MSCI.
For Strategy, the issue concerns access to capital invested in these products. Index funds adjust their positions according to changes in their index composition. The removal may therefore reduce demand from these investors. It does not forbid buying the stock and does not require the company to change its bitcoin treasury.
Why MSCI disputes Strategy’s status
The disagreement arises from rules adopted by MSCI in October on non-operational companies. The provider wants to exclude vehicles mainly holding financial assets from indices designed to track operational companies. Its review takes into account operational assets and other financial indicators. The published list does not specify which criteria Strategy failed to meet.
The company defends another interpretation of its model. It considers that its capital raises, bitcoin cash management, and issuance of financial products constitute an operational activity. In a letter sent to MSCI in August, it denounced a “discriminatory, arbitrary, and misguided” proposal. It also asserts that the index must reflect the market, without deciding which companies deserve to be included.
This opposition centers on the place of bitcoin in Strategy’s finances. The company maintains a distinct software activity, but its digital reserves weigh heavily in its financial profile. MSCI thus poses a question: does the company operate an economic activity or mainly manage an asset portfolio? The answer determines its eligibility for indices reserved for operational companies.
Significant reserves, but a status still debated
Recent figures show the weight of bitcoin on Strategy’s balance sheet. The company indicates it purchased 1,036 BTC between November 2 and 8, for 81.9 million dollars. It paid an average of 79,012 dollars per bitcoin. This is its second consecutive weekly purchase.
After this operation, Strategy declares holding 850,364 BTC, acquired for 64.16 billion dollars. The average cost reaches about 75,456 dollars per unit. The company also states that it holds 4.9 billion dollars in US dollar assets as of November 8, 2026. These figures illustrate the magnitude of its treasury, without settling the debate on its status.
At the same time, the company bought back 188 million dollars of STRC securities. These operations add to bitcoin purchases and use of capital markets. For MSCI, the question remains about the dominant activity and its compliance with index rules. For Strategy, the challenge is to have its model recognized as a business activity.
The decision, expected after the close on November 30, will provide the first concrete measure of the disagreement. If the removal is confirmed, the affected funds will have to adjust their portfolios, without imposing a sale of bitcoins on the company. Strategy will thus be able to continue its purchases according to its decisions, while its access to index capital will depend on its ranking and investors’ reaction.
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Journaliste et rédacteur web passionné par l’univers des cryptomonnaies et des technologies Web3. J’y traite les dernières tendances et actualités afin de proposer un contenu de haute qualité à un large public du secteur.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.