MicroStrategy faces potential removal from the MSCI Global Investable Market Indexes. A proposed rule change targets companies with substantial treasury holdings, specifically focusing on the firm's vast Bitcoin reserves.
The proposal is currently under consultation. It introduces new financial tests to determine if such entities qualify as operating companies for index eligibility.
An index removal would force institutional funds benchmarking against MSCI to liquidate their MicroStrategy (MSTR) positions. This creates significant selling pressure for common stock and preferred series like STRC.
The move threatens the company's financial stability and market perception. MicroStrategy recently sold Bitcoin to bolster cash reserves for obligations including preferred stock dividends.