MSCI's removal of Strategy from its indices is expected to trigger a multi-billion dollar sell-off.

MSCI announced the results of its November index review, removing Strategy, co-founded by Michael Thaler, from its indices. The change will take effect after the market closes on November 30. Passive funds tracking the index and benchmark investors will need to adjust their portfolios accordingly, and the market estimates that this will trigger approximately $2 billion to $3 billion in passive selling of MSTR. MSCI forced index funds to sell MSTR shares, not Bitcoin; Strategy has no obligation to sell Bitcoin due to its removal from the index. If MSTR's share price falls and its premium narrows, the company will face greater difficulty in raising funds through issuing new common stock, thus weakening its ability to buy Bitcoin. In extreme cases, if the price of Bitcoin falls, the company may be required to fulfill obligations such as paying cash dividends on preferred securities, or may need to rely on existing reserves, adjust floating interest rate terms, repurchase securities, or find other sources of liquidity.