Strategy generated $19.53 billion in profits last quarter. However, MSCI plans to remove MSTR from several major stock indexes as early as 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 visibility of the stock among institutional investors. This distinction now goes beyond the sole technical financial 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 the status of Strategy: an operating company or a bitcoin investment vehicle.
- Despite this decision, Strategy keeps its 850,364 BTC and continues its bitcoin purchases.
An exclusion from indices, not from the stock market
In its November analysis, MSCI plans to remove Strategy A stock, listed under MSTR, from the MSCI USA index after the November 30 close. The measure also affects international indices including American stocks. Among them are the MSCI World and the 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 the indices that certain funds use to compose their portfolios. Thus, an ETF that replicates MSCI USA will normally have to sell its MSTR shares after their withdrawal. This sale can take place even if its manager contests MSCI.
For Strategy, the issue concerns access to capital invested in these products. Index funds adjust their positions to changes in the composition of their index. Withdrawal may therefore reduce demand from these investors. It does not prohibit the purchase of the stock and does not force the company to change its cash flow to bitcoin.
Why MSCI challenges Strategy’s status
The disagreement comes from rules adopted by MSCI in October on non-operational companies. The provider wants to exclude vehicles holding mainly financial assets from indices designed to track operational companies. Its review takes into account assets related to operations and other financial indicators. The published list does not specify which criteria Strategy allegedly failed to meet.
The company defends another reading of its model. It considers that its capital raising, the management of its bitcoin cash flow and the issuance of financial products constitute an operational activity. In a letter sent to MSCI in August, it denounced a “discriminatory, arbitrary and misguided” proposal. She also says the index should reflect the market, without deciding which companies deserve to be included.
This opposition is due to the place of bitcoin in Strategy’s finances. The company maintains a separate software business, but its digital reserves weigh heavily on its financial profile. MSCI therefore asks a question: does the company operate an economic activity or does it primarily manage a portfolio of assets? The answer determines its eligibility for indices reserved for operating companies.
Significant reservations, but a status still debated
Recent figures show the weight of bitcoin in Strategy’s balance sheet. The company says it purchased 1,036 BTC between November 2 and 8, for $81.9 million. She paid an average of $79,012 per bitcoin. This is his second consecutive weekly purchase.
After this operation, Strategy declares holding 850,364 BTC, acquired for $64.16 billion. The average cost reaches approximately $75,456 per unit. The company also indicates that it holds $4.9 billion in assets in US dollars as of November 8, 2026. These figures illustrate the extent of its cash flow, without resolving the debate on its status.
At the same time, thecompany repurchased $188 million of STRC securities. These operations are in addition to purchases of bitcoins and use of capital markets. For MSCI, the question remains that of the dominant activity and its compliance with the rules of the indices. For Strategy, the challenge is to have its model recognized as a business activity.
The decision expected after the close on November 30 will give a first concrete measure of the disagreement. If the withdrawal is confirmed, the funds concerned will have to adapt their portfolios, without imposing a sale of bitcoins on the company. Strategy will therefore be able to continue its purchases according to its decisions, while its access to index capital will depend on its ranking and the reaction of investors.
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