MSCI is set to announce on Wednesday evening whether MicroStrategy will remain in its global stock indexes. A preliminary list published by the index provider on October 15 already labeled the company as Deleted, alongside four other firms including Metaplanet and Yellow Cake.
The potential exclusion follows a new screening rule that evaluates whether a company's operating assets account for more than 50% of its total assets. Companies failing this check must then pass five financial ratios; failing four or more results in ineligibility for the MSCI Global Investable Market Indexes.
MicroStrategy, which held 850,364 bitcoin as of November 8, is the only large-cap company on the list. JPMorgan analysts previously estimated that an exclusion from MSCI indexes could trigger up to $2,8 billion in forced selling from passive funds that track these benchmarks.
If removed, the deletion would take effect at the close of November 30. MicroStrategy has stated that a potential removal would not have a meaningful impact on its business operations, and the company is not required to sell its bitcoin holdings under the new index rules.
