Strategy’s MSCI removal may trigger $2B-$3B in forced MSTR selling

MSCI’s decision to remove Strategy (MSTR) from its global stock indexes after the Nov. 30 close could trigger roughly $2 billion to $3 billion in forced selling of MSTR as passive funds exit, CryptoPotato reported. The selling pressure may extend beyond a share-price decline. Strategy has raised funds by issuing common stock and other securities and used the proceeds to buy more Bitcoin. If MSTR shares fall sharply and the stock’s premium to the net asset value of its Bitcoin holdings narrows, raising funds through common stock issuance could become less attractive. Existing shareholders could also face greater dilution pressure. The decision does not directly affect Strategy’s Bitcoin holdings. Still, it could weaken one of the company’s main channels for funding Bitcoin purchases, which may also affect other companies that have adopted crypto treasury strategies.