Strategy Stock Falls 9.6% After MSCI Index Rules Threaten Removal
Strategy shares tumble as MSCI rules shift
Strategy (formerly MicroStrategy) shares fell 9.56% to $136.83 on Friday, Oct. 16, after MSCI adopted new index-eligibility rules that put the company at risk of being removed from its Global Investable Market Indexes. The stock's decline far exceeded Bitcoin's drop over the same period, which was just 0.98%.
Market drop goes beyond Strategy
Friday's selloff was not limited to Strategy. The Nasdaq Composite fell 2.14%, and bitcoin miner MARA Holdings lost 9.60%. These broader market declines suggest Strategy's drop may not be entirely driven by the MSCI decision alone. Strategy's closing price was its lowest since Sept. 17 and below its October closing high of $164.55.
What Strategy holds and what MSCI proposes
Strategy disclosed in an SEC filing that it held 848,250 BTC as of Oct. 11, purchased for $64 billion at an average cost of $75,444 per coin including fees. At Friday's close, that holding was worth about $69.14 billion, roughly $5.1 billion above purchase cost. The unrealized gain on the bitcoin does not address the separate risk to share demand from index-tracking funds if Strategy is removed from MSCI indexes.
How Strategy is pushing back
In its campaign against the MSCI proposal, Strategy stated that MSCI GIMI-linked funds held approximately 13 million shares, or 3.1% of its basic shares outstanding. The company argued the proposal "would not meaningfully affect Strategy." A simulation using May 2026 data had flagged Strategy for deletion, but that was not a final removal decision.
Next steps for the index decision
MSCI will publish its final affected-company list on Nov. 11. The new methodology is set to take effect at the close of Nov. 30.
What remains unclear
It is unclear whether Strategy will actually be removed from MSCI indexes. The company has contested the proposal, but MSCI has not yet released its final list of affected companies. It is also unclear how much of Strategy's stock decline was caused by the MSCI decision versus broader market forces.
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.