Strategy falls 9.6% after MSCI ruling but Bitcoin holdings stay $5bn up

Key points

• MSCI announced on 15 Oct, after US markets closed, that companies mainly holding assets rather than running a business will lose index eligibility.
• Strategy holds 848,250 BTC bought at an average of $75,444, worth about $69.1bn at $81,434, a paper gain of roughly $5.08bn.
• MSCI publishes its final deletion list on 11 Nov, with changes taking effect after the 30 Nov close.

Strategy shares fell 9.56% to $136.83 on 16 Oct, the first full trading day after MSCI's ruling on asset-holding companies, Bitcoin.com News reports. The index provider said on 15 Oct, after US markets closed, that firms which mainly hold assets rather than run a business will lose eligibility for its indexes.

The MSCI ruling hit the equity rather than the Bitcoin stack. Strategy's latest SEC filing shows 848,250 BTC as of 11 Oct, bought for $64bn at an average of $75,444. At about $81,434, that holding is worth roughly $69.1bn, a paper gain of some $5.08bn, or 7.9% on cost.

Related names also slipped. Stretch closed at $97.72, its lowest since 16 Sept, Strike fell 3.5% and Strive lost 6.1%, while Metaplanet rose 4.5%. Trading volume of about 31.8m MSTR shares was put at 1.44 times the normal level.

Bitcoin miners fell just as hard without an index threat: MARA dropped 9.6% and Riot 11.5%, while Coinbase lost 5.8% as the Nasdaq Composite fell 2.1%.

What to watch: MSCI publishes its final deletion list on 11 Nov, with the new rules applying after the 30 Nov close.

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