Index operator MSCI will remove Michael Saylor's Strategy and other companies from its global indices after determining that they are closer to investment funds. This move may curb the flow of passive investment funds into these stocks. Last year, MSCI proposed excluding digital asset holding companies that hold 50% or more of total assets, and then launched a broader review of what it called “non-operating companies.” The agency added that such companies have fund-like characteristics and are therefore excluded from its benchmark index. Strategy shares fell 2.5% in after-hours trading on Wednesday. The company warned last year that if removed, its $2.8 billion stock would be liquidated and would have a “chilling effect” on the industry. Strategy shares have dropped about 20% so far this year, while Bitcoin's price has dropped 15%.

Index operator MSCI will remove Michael Saylor's Strategy and other companies from its global indices after determining that they are closer to investment funds. This move may curb the flow of passive investment funds into these stocks. Last year, MSCI proposed excluding digital asset holding companies that hold 50% or more of total assets, and then launched a broader review of what it called “non-operating companies.” The agency added that such companies have fund-like characteristics and are therefore excluded from its benchmark index. Strategy shares fell 2.5% in after-hours trading on Wednesday. The company warned last year that if removed, its $2.8 billion stock would be liquidated and would have a “chilling effect” on the industry. Strategy shares have dropped about 20% so far this year, while Bitcoin's price has dropped 15%.