Strategy Dropped from MSCI Index, Triggering Potential $2-3B Passive Selloff

Index exclusion is a mechanical event, not a verdict on Strategy's business, but it matters because passive flows are price-insensitive by design: funds tracking MSCI benchmarks must sell regardless of fundamentals. The affected constituency is narrow but concentrated — Strategy holders exposed to benchmark-tracking vehicles, and the broader crypto-equity complex that trades on its coattails. With rebalancing timing unspecified, the open question is whether the selling is absorbed gradually or lands in a single window; the market's reaction around the eventual effective date will say more about demand for crypto-linked equity than the deletion itself.