Strategy Shares Fall 3% as MSCI Introduces Index Eligibility Rules That Could Lead to Removal

Cantor Fitzgerald raised its price target for MicroStrategy (NASDAQ:MSTR) to $208 from $186, citing gains in bitcoin holdings and updated financial models. The new target is based on a sum-of-the-parts valuation, including a 12-month forward bitcoin price assumption of $112,000. The firm also increased its enterprise value estimate for the company to $110 billion from $97 billion.

Strategy faces potential removal from MSCI's global equity indexes under new rules, impacting billions in passive investments. Shares fell 2.7% premarket. MSCI's decision targets non-operating companies, with Strategy and Metaplanet on the deletion list. Strategy warned of $2.8B stock liquidation if excluded. The company has a market value of $64.3B.

Strategy's stock fell 4% after MSCI announced new rules that could remove it from the MSCI World Index. The change targets 'non-operating companies' and will be finalized in November 2026. Strategy holds mostly non-operating BTC assets, making it a likely candidate for removal. MSCI's decision could trigger significant outflows, with JPMorgan estimating $2.8 billion in potential losses. Strategy's management has lobbied against the removal, calling the rules discriminatory.

U.S. stock futures rose on Friday, with S&P 500 and Nasdaq set for weekly declines. Tesla shares gained 5% premarket after unveiling its Roadster model. Strategy fell 3% due to potential MSCI index exclusion. Netflix dropped 2% following a leadership change. CoreWeave declined 3.8% amid AI sector scrutiny. Cohen & Steers surged 5.8% on strong Q3 inflows. Alcoa gained 2.5% on better-than-expected earnings. Site Centers rose 18.3% after announcing a special dividend and asset sale.

MSCI's new rules may remove Strategy Inc (MSTR) from global indices due to its substantial investment assets, primarily Bitcoin. MSTR's high P/S ratio and insider selling raise concerns. The changes could pressure MSTR's stock price when implemented in November. MSTR has a market cap of $63.86B and holds 848,250 Bitcoins.

MSCI will remove Strategy, the largest listed Bitcoin holder, from its indices by November 30, 2026. The decision follows a review of companies with non-operating balance sheets. Strategy's inclusion in MSCI World ETFs means investors indirectly hold Bitcoin, impacting portfolio strategies. MSCI's final removal list will be published on November 11, 2026. Strategy's removal probability is above 90%, according to Polymarket.