At a glance
- Any removal would take effect after the Nov. 30 close.
- MSCI adopted the new eligibility rules Oct. 15, DL News reported, and Strategy's removal has not been confirmed.
- Clients holding the affected MSCI Global Investable Market Indexes and clients holding Strategy directly are exposed to the same rebalancing.
MSCI will decide by Nov. 11 whether Strategy stays in its global equity indexes. Any removal would take effect after the Nov. 30 close.
MSCI adopted the new eligibility rules Oct. 15, DL News reported, and Strategy's removal has not been confirmed. The screen first asks whether a company holds substantial operating assets; companies that fail face five financial-ratio tests, and flags on at least four trigger ineligibility. Existing constituents are removed only if they fail the screen in both of their two most recent annual filing periods, and MSCI may also weigh the latest interim filing.
Clients holding the affected MSCI Global Investable Market Indexes and clients holding Strategy directly are exposed to the same rebalancing. Funds that replicate the indexes must rebalance out of any removed company, so index-driven selling would land after the Nov. 30 close. Exclusion would not itself require Strategy to sell bitcoin.
JPMorgan estimated in 2025 that exclusion from MSCI indexes could trigger up to $2.8 billion of sales in Strategy shares, Bloomberg reported. The same estimate said potential selling could reach $8.8 billion in total if other index providers followed.
Brian Dobson, managing director for disruptive technology research at Clear Street, told Bloomberg: "Index inclusion is important for a company like Strategy because it provides consistent buying, including through weekly 401(k) contributions and mutual funds." "Removal from an index can cause short-term selling pressure as investors tracking that index sell their holdings," he said.
The daily dividend schedule would begin Nov. 1 for STRC and Jan. 1, 2027, for STRF, STRK and STRD, subject to the amended terms being filed and becoming effective. Strategy said Oct. 28 that shareholders approved the amendments based on preliminary voting results. Preferred sales financed purchases of 136,000 bitcoin, as Private Wealth Daily previously reported, with STRC paying a variable dividend of around 12%, according to CoinShares.
The index decision lands between two dividend deadlines
Scheduled dates for MSCI's review and Strategy's preferred-dividend changes
- Oct 15MSCI adopts new eligibility rules (Completed)
- Oct 28Shareholders back daily preferred dividends (Completed)
- Nov 1Daily dividends start for STRC (Upcoming)
- Nov 11MSCI decides on Strategy's index status (Current stage)
- Nov 30Any removal takes effect after the close (Upcoming)
- Jan 1, 2027Daily dividends start for STRF, STRK and STRD (Upcoming)
Show as table
| Date | Event | Detail |
|---|---|---|
| Oct 15 | MSCI adopts new eligibility rules | |
| Oct 28 | Shareholders back daily preferred dividends | |
| Nov 1 | Daily dividends start for STRC | |
| Nov 11 | MSCI decides on Strategy's index status | |
| Nov 30 | Any removal takes effect after the close | |
| Jan 1, 2027 | Daily dividends start for STRF, STRK and STRD |
Index inclusion is important for a company like Strategy because it provides consistent buying, including through weekly 401(k) contributions and mutual fundsBrian Dobson, managing director for disruptive technology research at Clear Street, to Bloomberg
Reported by the Adoption desk from DL News, Bloomberg (estimates and commentary reported via DL News), TradingView (MSCI methodology coverage, via DL News) and CoinShares (STRC dividend, via Private Wealth Daily archive). Published . Corrections