MSCI Adopts Index Exclusion Rules That Could Remove Strategy From Indexes
(2 hours ago) · 1 source · Summarized by CryptoBipto
MSCI has adopted new rules for index inclusion that could result in the removal of Strategy (formerly MicroStrategy) from its indexes. The rules appear to target companies whose primary value is derived from cryptocurrency holdings rather than traditional business operations. If enforced, Strategy could lose its place in major MSCI indexes that are tracked by institutional investors worldwide.
WHY IT MATTERS
Think of a stock market index like a curated playlist of companies that big investment funds follow. When a company is on the playlist, many funds automatically buy its stock. MSCI is one of the organizations that creates these playlists, and trillions of dollars in investments follow their decisions. Strategy, formerly called MicroStrategy, is a company that has spent billions buying Bitcoin, making it less of a traditional software company and more of a Bitcoin holding company. MSCI's new rules seem designed to address companies like this, which may not fit neatly into traditional stock categories. If Strategy is removed from MSCI's indexes, funds that track those indexes would need to sell their Strategy shares, which could affect the company and its shareholders.
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- cointelegraph.com
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