What Happened?
Shares of bitcoin development company Strategy (NASDAQ: MSTR) fell 10.5% in the afternoon session after MSCI approved rules that could remove the Bitcoin treasury company from its indexes.
As detailed by TipRanks, under this newly approved framework, MSCI will apply an initial core screen to determine whether an issuer has substantial operating assets, and issuers that fail this screening will face an exclusion screen based on five financial ratios. CoinDesk noted that the rules effectively mean companies that exist mainly to hold investments—such as Strategy's reserves of 848,250 Bitcoin, which are worth roughly $69.67 billion—will no longer be eligible for index inclusion.
Furthermore, TipRanks explained that exclusion from an index typically prompts index-tracking funds and exchange-traded funds to adjust their portfolios by selling shares of removed companies to mirror the updated index composition. Both CoinDesk and TipRanks reported that MSCI is scheduled to release the final list of affected companies on November 11. Finally, TipRanks noted that these high-stakes index changes are scheduled to take effect after the close of trading on November 30.
Compounding the pressure on the crypto proxy, CoinDesk reported that Bitcoin itself trended lower, dipping roughly 1% to trade near $81,300 as the broader equity selloff spread to crypto markets.
The shares closed the day at $136.72, down 9.5% from the previous close.
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What Is The Market Telling Us
Strategy’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. But moves this big are rare even for Strategy and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 6.5% on the news that Bitcoin dropped below $84,000 amid broad, leverage-driven selling across the cryptocurrency market. According to the Crypto Times and CoinDesk, Bitcoin fell more than 3% to approximately $83,700, leading to more than $166 million in liquidated Bitcoin positions across the cryptocurrency market.
The digital asset came under pressure as a global bond selloff drove the U.S. 30-year Treasury yield to 5.715% alongside a rising U.S. Dollar Index. The broader bond market rout and stronger dollar contributed to selling pressure that dragged several cryptocurrency-linked stocks toward September lows.
Strategy is down 12.9% since the beginning of the year, and at $136.89 per share, it is trading 54.7% below its 52-week high of $301.91 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Strategy’s shares 5 years ago would now be looking at an investment worth $1,851.
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