US Stock Market Move | May Face Removal from MSCI Global Index; Major Bitcoin Holder Strategy (MSTR.US) Drops Over 4%

On Friday, major Bitcoin holder Strategy (MSTR.US) fell over 4% in early trading, now at $145.06. On the news front, MSCI Inc. recently approved new rules that could ultimately remove Strategy Inc from its global equity benchmark indexes. The move could trigger billions of dollars in stock selling and add new pressure to the financing model behind Michael Saylor's massive Bitcoin holdings. According to analysts, a final removal would deal a heavy blow to the cryptocurrency reserve model pioneered by the former enterprise software company: companies raising funds from capital markets by issuing additional common shares, debt, and complex securities to hoard large amounts of crypto tokens. The most critical impact is that removal from the index would shrink the stock's investor base, thereby weighing on its share price. JPMorgan estimated last year that if MSCI removes it, it could trigger up to $2.8 billion in Strategy stock selling pressure; if other index providers follow suit, the scale of selling could further increase to $8.8 billion.