Strategy Stock Tumbles on MSCI Removal Threat and BTC Sales

Shares of Strategy (MSTR) fell 3.5% in the afternoon session after index provider MSCI proposed removing the company from its Global Investable Market Indexes.

The proposed removal is part of a potential rule change affecting non-operating companies with large treasury asset holdings, which includes Strategy due to its massive Bitcoin reserves of roughly 840,400 BTC.

A final decision, expected by October with changes planned for November 2026, could force investment funds that track MSCI benchmarks to sell their shares, creating significant selling pressure on the stock.

Adding to investor worries, Strategy recently sold 1,690 BTC, worth roughly $109 million, below its average cost basis. The sales were necessary for the company to meet cash obligations and fund repurchases of its preferred shares (STRC).