Key Insights:
- Strategy slams the MSCI index for classifying Bitcoin as a non-operating asset.
- MSCI’s potential removal of MSTR stock could trigger significant passive fund outflows.
- Strategy resumed Bitcoin purchases after a five-week pause, acquiring 4,603 BTC for $369.7 million.
MSTR stock faces renewed index risk after Strategy pushed back against an MSCI proposal that could classify the company as ineligible for major global equity indexes.
MSCI opened a consultation on Aug. 3 covering the treatment of companies it considers predominantly non-operating. Under a simulation using May 2026 data, Strategy, Metaplanet, and Yellow Cake would have been removed from the MSCI ACWI IMI.
Strategy has formally opposed the proposal, calling it misguided and inconsistent with established accounting principles. The dispute comes as the company has returned to Bitcoin accumulation after several weeks focused on liquidity and capital management.
Strategy Pushes Back Against MSCI Proposal
Strategy has responded to MSCI’s proposed “non-operating company” exclusion. The firm referred to this proposal as misguided and inconsistent with established securities laws and accounting principles.
“Strategy reports its BTC business as an operating segment and BTC gains and losses as operating expenses. The proposal is misguided, flawed, and conflicts with securities laws and accounting principles,” the firm added.
The company argued that MSCI’s proposal specifically targets Digital Asset Treasury (DAT) companies. Strategy said the proposal effectively revives an earlier plan that MSCI withdrew after facing criticism. According to Strategy, the proposal would remove two major DAT companies from MSCI indices and prevent future DAT companies from being included.
Strategy also challenged MSCI’s classification of Bitcoin as a “non-operating” asset. The company said its Bitcoin business is reported as an operating segment under U.S. GAAP and SEC guidance.
Strategy added that funds tracking MSCI indices represent approximately 3% of MSTR’s outstanding shares. This amounts to roughly 60% of one day’s average trading volume, limiting the potential impact on the stock.
How Can The Removal of MSTR Stock from MSCI Impact Investors?
For most of 2026, the MSTR stock has been under strong selling pressure. Since the beginning of 2026, the stock price has been trading at 25% discount. This is despite its strong 40% recovery in the month of August.
The MSTR stock ended August with a staggering 43% returns, most of which came in the last two weeks. It is also the best-performing month for the stock since November 2024.
However, investors would be closely watching the removal of Strategy from the MSCI index. It could trigger significant outflows from passive investment funds. Back in November 2025, JPMorgan estimated that an MSCI exclusion could result in approximately $2.8 billion in outflows from MSCI-linked funds.
The total could rise to around $8.8 billion if other major index providers, including FTSE Russell and S&P, adopt similar rules. Furthermore, passive funds tracking these indexes would be required to sell their MSTR holdings. It could create short-term downward pressure on the MSTR stock price.
Strategy Resumes Bitcoin Purchases
According to its latest filing on August 31, Michael Saylor’s Strategy purchased 4,603 BTC for $369.7 million between August 24 and August 30. The company paid an average of approximately $80,318 per Bitcoin, marking its first BTC purchase since June 22.
Between June 22 and the latest purchase, Strategy had sold approximately 6,916 BTC for $432.5 million, at an average price near $62,500. Meanwhile, Strategy repurchased 1.55 million STRC shares for $151.8 million and increased its USD cash reserves by $29 million to $1.61 billion. The company now has more than four years of dividend coverage on its balance sheet.
This article is for informational purposes only and does not constitute financial advice. Equity and cryptocurrency markets can experience sharp price movements.
Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
