MSCI Lists Strategy for Removal From USA Index

MSCI has listed Strategy’s Class A shares for removal from the MSCI USA Index after the November 30, 2026, close, applying a new framework for companies it considers to have characteristics similar to investment funds. The change is scheduled to take effect after that session and may prompt funds tracking the index to adjust their holdings.

The November constituent review names Strategy among 24 stocks slated for deletion from the MSCI USA Index. MSCI’s framework first assesses whether a company has substantial operating assets. Companies that fail that screen face five financial tests, and four or more flags make a security ineligible. Existing constituents must fail the screen in each of their two latest annual filing periods to be removed.

MSCI adopted the broader rules after reviewing its treatment of nonoperating companies. They replace temporary restrictions on companies whose digital-asset holdings represented at least half of total assets. Strategy has disputed being classified as nonoperating, saying its Bitcoin business is reported as an operating segment under U.S. accounting rules.

The index provider’s public materials do not identify which specific financial ratios...