Strategy (Nasdaq: MSTR) is reportedly entering MSCI’s final November review list, which puts its place in the index provider’s benchmarks at risk, according to Chinese-language outlet PANews, which cited a Bitcoin.com report. MSCI is due to publish the final list of affected companies on November 11.
The outcome of the review has not been reported, and the information comes from a single secondary source.
What MSCI’s new rules say
According to PANews, MSCI finalized new rules on October 15 under which “non-operating companies” are not eligible for inclusion in its global investable market indexes. The rules take effect with the November index review.
MSCI said it will publish the final list of affected companies on November 11, with changes taking effect on November 30, as relayed by PANews citing Bitcoin.com.
Estimated passive selling
JPMorgan analysts earlier estimated that, if Strategy were removed from MSCI indexes, funds tracking those indexes could sell about $2.8 billion of the stock, according to the PANews report. The report notes that this figure rests on an earlier proposal concerning digital-asset companies, not on the final rules, so it may not reflect what the adopted framework would produce.
What remains unknown
Several points are unclear. It has not been confirmed whether MSCI’s final list will actually classify Strategy as a non-operating company, nor how the final rules define that term. No revised estimate of potential selling under the final rules has been reported, and the available report does not say whether Strategy or MSCI have commented directly on the company’s situation.
The publication of the list on November 11 and the effective date of November 30 are the two points that should clarify the matter.
Sources
- panewslab.com PANews — MSCI今日将公布最终“非经营公司名单”，Strategy指数席位面临风险 Accessed
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