Strategy Faces MSCI Reclassification Risk That Could Force $2.8B–$8.8B in Passive Fund Selloffs
Strategy (formerly MicroStrategy) confronts a structural challenge as MSCI Inc. reviews whether to reclassify the firm as a Digital Asset Treasury vehicle rather than an operating company. The potential reclassification could trigger forced selling of between $2.8 billion and $8.8 billion by passive funds tracking MSCI equity benchmarks. Simultaneously, the firm's stock trades near parity with its Bitcoin holdings' net asset value, eroding the premium that historically enabled its capital-raising strategy.