Strategy Shares Plunge as Index Snub Sparks Investor Panic

The company formerly known as MicroStrategy is navigating one of the most turbulent periods in its recent market history. Investors received another severe setback when the firm failed to secure inclusion in the prestigious S&P 500 index, raising fundamental questions about its business approach. As share values deteriorate and major institutions face substantial losses, an even greater threat to the stock’s liquidity now looms on the horizon.

The dramatic price collapse has devastated institutional investment portfolios. California’s public pension fund CalPERS, among the largest in the United States, has been particularly impacted. During the third quarter, the fund established a $144 million position in Strategy shares. Following the recent crash, Read more...