Strategy (MSTR) extends its decline to 9%.

BlockBeats news, October 17 — According to market data from BIT (bit.com), Strategy (MSTR) extended its decline to 9.08%, now trading at $137.5.

On the news front, MSCI plans to adopt new rules that screen out companies whose asset structures and operating characteristics are closer to investment funds rather than traditional operating enterprises, based on the proportion of operating assets and multiple financial ratio tests. Strategy, due to its extremely high proportion of Bitcoin assets, has been included in the watchlist of companies that may be removed. The final affected list is expected to be announced on November 11.

The market believes that if MSTR is removed from MSCI-related indices, passive funds tracking these indices will be forced to reduce their holdings of its stock, potentially creating billions of dollars in selling pressure and posing a challenge to its model of continuously increasing Bitcoin holdings through equity financing.