Strategy Inc falls ahead of MSCI index ruling

Strategy Inc shares dropped 4.3% in morning trading today as the company faces multiple challenges, including a key index decision expected Friday.

MSCI is reviewing whether to classify Strategy as a "non-operating company" under a new framework, which could result in its removal from MSCI's Global Investable Market Indexes. JPMorgan estimated that such a move could affect approximately $2.8 billion in passive fund flows, as index-tracking funds would need to sell their positions.

The company's latest Bitcoin purchase added to investor concerns. Strategy bought just 250 BTC for approximately $21.5 million between October 5 and October 11, marking its smallest acquisition of the year. The purchase represents an 85% decline from prior weekly averages.

During the same period, Strategy redirected capital toward repurchasing $192.4 million of its STRC preferred shares. The shift in capital allocation has raised questions among some investors about whether the company's Bitcoin accumulation strategy is slowing.

Executive Chairman Michael Saylor addressed the market on Bloomberg Television Monday, stating that Bitcoin has bottomed and will return above $100,000. The comments have not yet reversed the selling pressure on Strategy shares.

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