MSCI Approves New Rules Potentially Excluding MicroStrategy From Major Global Stock Indexes

MSCI approved new rules to remove companies that function more as investment vehicles than operating businesses, potentially leading to the exclusion of MicroStrategy (MSTR) from indexes like MSCI World and MSCI Emerging Markets. This exclusion could force index-tracking ETFs to sell MSTR shares during rebalancing, creating selling pressure, although MSTR estimates MSCI-linked funds hold about 13 million shares, or 3.1% of its basic shares outstanding. MSCI will publish the affected company list on November 11, with rules taking effect after November 30.