Index provider MSCI has confirmed that it will remove Bitcoin treasury firm Strategy from its global stock indices after months of debate over whether crypto treasury firms are considered operating companies.
MSCI’s final list of affected securities, released as part of its index review in November, lists “STRATEGY A” with an action of “Deleted.” Japan’s Metaplanet and crypto treasury firm Upexi are also up for deletion, while Ether treasury firm Sharplink is on a watchlist.
Strategy stocks fall 1.65% in after-hours trading on Wednesday.
The changes will take effect after markets close on November 30, according to MSCI’s implementation plan announced in October.
The repeal could prompt funds that track the affected benchmarks to sell the companies’ shares, reducing a source of passive investment demand.
As Cointelegraph reported in October, JPMorgan previously estimated that Strategy’s exclusion could trigger a sale of around $2.8 billion.
Strategy rejected the proposal, arguing that it would repackage MSCI’s previous efforts to exclude digital asset treasury companies and inject political decisions into index construction.
Still, the company downplayed the potential disruption. In its response to the consultation, Strategy said MSCI-linked funds held about 13 million shares, representing 3.1% of underlying shares outstanding and less than a day’s trading volume.
Related: The Bitcoin think tank questions MSCI’s “invisible committee” about strategy and the Metaplanet Rule
