MSCI rule could pressure Strategy after more than $60 billion in Bitcoin purchases

MSCI is consulting on quantitative screens that could reclassify companies focused on asset accumulation as closer to investment vehicles and remove them from its global equity indexes, a shift that may pressure Strategy’s capital-markets financing model. Under the proposed methodology applied to May data, Strategy, Japan-based Bitcoin treasury firm Metaplanet and uranium investor Yellow Cake would have failed eligibility tests built around operating asset intensity plus expense, cash-flow, fair-value and capital-dependence metrics. Strategy has deployed more than $60 billion into Bitcoin since 2020 largely by issuing equity and preferred securities, so index exclusion could reduce passive demand, raise financing costs and intensify dilution risk. Bitcoin’s roughly 23% weekly rebound has lifted Strategy’s 840,447 BTC holdings to about $65 billion, above its $75,385 average cost, while cash reserves rebuilt to $4.8 billion—enough for roughly 2.8 years of preferred dividends and interest—even as annual preferred and interest costs near $1.7 billion and the firm has recently sold some Bitcoin. MSCI is taking feedback through end-September and plans to announce consultation results in October, while considering buffers and multi-period failure requirements before any removal.

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