MSCI Approves New Index Rules, Putting Strategy and Metaplanet at Risk of Removal

Summary

MSCI approved new index eligibility rules on October 15, placing Bitcoin treasury companies Strategy and Metaplanet at risk of removal. According to the official announcement, the changes will exclude qualifying nonoperating companies from its Global Investable Market Indexes.

MSCI will publish its final list of affected companies on November 11 before implementing the rules on November 30, potentially affecting institutional investment in Strategy shares. JPMorgan previously estimated that Strategy could face approximately $2.8 billion in stock outflows if excluded from the indexes.

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MSCI’s New Financial Screening Rules Put Bitcoin Treasury Firms Under Review

MSCI introduced the framework following an August consultation examining companies whose financial structures resemble investment vehicles rather than operating businesses. The methodology begins by assessing whether companies hold sufficient operating assets to qualify for index inclusion.

Companies failing that assessment face five additional financial tests covering expenses, cash flow, asset valuations, and external financing. MSCI will classify companies as ineligible when they fail the initial screening and trigger at least four additional financial indicators.

Existing index constituents must fail the screening across their two most recent annual reporting periods before removal. MSCI explained that the requirements include safeguards intended to reduce unnecessary changes in index membership.

“To reduce index turnover, buffers will apply to both the eligibility thresholds of the financial ratios and the timing of index inclusion and removal,” MSCI stated.

An earlier simulation using May 2026 data identified Strategy, Metaplanet, and British uranium investment company Yellow Cake as potential exclusions. The assessment also placed Ethereum treasury company SharpLink among businesses requiring further monitoring under the proposed methodology.

For Strategy, exclusion could reduce demand from passive investment funds and affect access to capital through future share offerings. JPMorgan previously warned that potential selling pressure could increase if other major index providers introduced similar restrictions.

Strategy Challenges Classification as MSCI Prepares Final Review

Strategy has opposed MSCI’s approach, arguing that its Bitcoin treasury operations form part of a legitimate operating business. Executive Chairman Michael Saylor previously challenged the proposed classification, emphasizing Strategy’s software operations and Bitcoin treasury activities.

In a September letter, Strategy described the proposal as discriminatory toward digital asset treasury companies and questioned MSCI’s classification approach. The company maintained that its business activities differ from those of conventional investment funds.

MSCI previously delayed broader restrictions on digital asset treasury companies while examining their eligibility under a more comprehensive framework. The approved methodology replaces temporary measures targeting companies whose digital assets represented at least 50% of total assets.

Conclusion

MSCI’s decision places Strategy and Metaplanet under stricter eligibility requirements without confirming their removal from global equity indexes. The November 11 review will identify affected companies before the new rules take effect at the November 30 market close.

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