Why is MicroStrategy's stock falling?

MicroStrategy's stock is falling due to fears of exclusion from MSCI indexes and general market weakness affecting risk assets.

What is the risk for MicroStrategy if excluded from MSCI indexes?

Exclusion from MSCI indexes could lead to approximately $2.8 billion in forced selling of MicroStrategy shares.

Is Michael Saylor concerned about MicroStrategy's stock performance?

Michael Saylor remains confident in MicroStrategy's resilience, stating the company is designed to survive severe market drawdowns.

Home / Business and Economy / MicroStrategy Stock Plunges Amid MSCI Exclusion Fears

MicroStrategy Stock Plunges Amid MSCI Exclusion Fears

21 Nov

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Summary

MicroStrategy stock fell over 11% this week amid index exclusion worries.
JPMorgan estimates $2.8 billion in forced selling if excluded from MSCI.
Michael Saylor remains confident despite stock's 39% year-to-date decline.

MicroStrategy Stock Plunges Amid MSCI Exclusion Fears

MicroStrategy's shares have seen a steep decline, plummeting over 11% this week after a substantial 17% drop in the preceding period. This downturn is exacerbated by concerns raised by JPMorgan analysts regarding a potential exclusion from MSCI indexes. Such an exclusion could trigger significant forced selling, with estimates suggesting losses could reach $2.8 billion if the company is removed from major indexes like the MSCI USA and MSCI World.

The broader market sentiment also impacted the stock, which fell over 5% on Thursday. This decline occurred against a backdrop of mixed U.S. jobs data that tempered expectations for interest rate cuts, affecting risk-on assets like cryptocurrencies and equities. The Nasdaq composite and S&P 500 also registered notable drops, while Bitcoin touched its lowest point since April 21.