Strategy fell 9.56% on the first session after MSCI’s index decision, on a day the Nasdaq lost 2.14%. The forced selling is small; the pressure on Strategy’s premium is not.
Strategy fell 9.56% on the first session after MSCI’s index decision, on a day the Nasdaq lost 2.14%.
The forced selling is small; the pressure on Strategy’s premium is not.
Key Stats for Strategy Stock
Current Price: $136.83
Street Target (Mean): ~$239
Street Target (Median): ~$215
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Strategy (MSTR) closed down 9.56% at $136.83 on Friday, October 16, the first session after MSCI said it will make non-operating companies ineligible for its Global Investable Market Indexes. The broader market fell too: the Nasdaq Composite lost 2.14% in a tech selloff, and TIKR puts MSTR’s five-year beta at 3.55. Bitcoin, the asset behind the stock, traded near $82,000 on Friday morning, about 2% above a day earlier. The company’s investor relations materials set the next two tests for October 28 and 29.
MSCI’s Rule Hits the Premium More Than the Shares
MSCI screens first for substantial operating assets. Companies that fail are ineligible if flagged on four or more of five financial ratios, and current members are removed only if they fail in each of their two most recent annual filing periods. The final list arrives November 11, effective at the November 30 close. A simulation in MSCI’s August consultation flagged Strategy, Metaplanet and Yellow Cake for deletion, Cointelegraph reported. Strategy counters that it reports its Bitcoin business as an operating segment under U.S. GAAP, so this is a finalized rule, not a confirmed removal.
Averytin News Financial update.