The decline in Strategy has expanded to 6.46%, possibly due to the risk of index removal faced by MSCI's new regulations

According to Gate market data, Strategy (MSTR) has expanded its decline to 6.46%, with a current price of 141.5 USD.

On the news front, MSCI plans to adopt new regulations that will filter out companies whose asset structures and operational characteristics are more similar to investment funds rather than traditional operating enterprises, based on the proportion of operating assets and multiple financial ratio tests. Strategy has been listed as a potential candidate for removal due to its extremely high proportion of Bitcoin assets. The final list of affected companies is expected to be announced on November 11.

The market believes that if MSTR is removed from the MSCI related indices, passive funds tracking these indices will be forced to reduce their holdings of its stock, potentially creating billions of dollars in selling pressure and posing a challenge to its model of continuously increasing Bitcoin holdings through equity financing.