MSCI removed Strategy from its indices, eliciting little market reaction, as Strategy itself had already mentioned this in its quarterly report two weeks prior. After the market closed on November 11th (Eastern Time), MSCI released its final list of removed companies. Strategy was removed from MSCI USA, along with MSCI World and ACWI. Effective at the close of trading on November 30th, passive funds must sell their holdings before then. Five companies were removed in the same batch, exactly the same as the preliminary removal list from October: Strategy, Metaplanet, Yellow Cake, Skel, and Upexi. SharpLink, Solana Company, and TON Strategy, which were on the watchlist, remained unchanged. The removal was based on the new rules implemented on October 15th, focusing on the proportion of operating assets and five financial indicators; the rules made no mention of Bitcoin. MSTR closed at $122.35, down 1.5% to 2.6% in after-hours trading. BTC didn't move much, currently around $73,900. Next, I'll look at two things: 1) Will passive selling compress the premium? Strategy estimates that passive funds hold approximately 13 million shares, representing 3.1% of the total outstanding shares, worth about $1.57 billion. JPMorgan Chase's cap is $2.8 billion. Exclusion won't force them to sell tokens; the pressure will fall on the share price. Once the premium narrows, the path of issuing shares to buy tokens will narrow. 2) Will other index companies follow suit? If FTSE and S&P also take action, JPMorgan Chase estimates the selling pressure could reach as high as $8.8 billion, a significant jump in scale. There's another comparison worth remembering: As of November 8th, Strategy held 850,364 BTC with an average cost of $75,456. BTC is currently about $1,500 below its cost basis. From November 2nd to 8th, it sold 2.05 million shares for $284 million and bought 1,036 BTC. I will be watching the cost basis, premium, and share issuance schedule together until November 30th. This does not constitute investment advice.