Strategy reported $19.53 billion in net income last quarter, but MSCI will remove the company’s MSTR shares from its MSCI USA Index after trading closes November 30. This removal also affects the MSCI World and MSCI All Country World indexes. The index provider adopted new rules in October targeting non-operating companies that primarily hold financial assets rather than operating businesses.
Rules for non-operating companies
MSCI screening considers a company’s operating assets and other financial measures to keep investment vehicles out of indexes meant to track operating companies. Strategy argues that managing its Bitcoin treasury, raising capital, and issuing financial products constitute a genuine operating business. In an August letter to MSCI, Strategy called the proposal "discriminatory, arbitrary, and misguided." The company maintains it also runs a software business, though Bitcoin dominates its finances.
| Financial Metric | Value |
|---|---|
| Last quarterly net income | $19.53 billion |
| Reported operating income | $20.91 billion |
| 2025 software revenue | $477.2 million |
| Software revenue (last quarter) | $125.4 million |
Nearly all of the $20.91 billion in reported operating income came from a rise in the accounting value of Bitcoin. Strategy’s software division recorded $125.4 million in quarterly revenue, which is a 3% decrease from the previous year.
Selling pressure on MSTR
The exclusion creates selling pressure because funds designed to copy the MSCI USA Index must sell their shares when a company disappears from the list. Strategy estimates that funds linked to MSCI indexes hold roughly 13 million of its shares, representing 3.1% of its outstanding common stock. If the stock price falls, Strategy faces difficulty raising the same amount of cash through share sales to buy Bitcoin.
