Strategy, the largest corporate holder of Bitcoin, could be removed from MSCI’s main stock indexes after the index provider finalised new rules for companies that mostly hold assets rather than run businesses.
MSCI said on 15 October that “non-operating companies” will be ineligible for its Global Investable Market Indexes. The change takes effect at the close of 30 November, as part of its November index review.
MSCI will publish the list of affected companies on 11 November.
How the test works
Companies first go through a core screen that checks whether they hold substantial operating assets.
Those that fail move to a second test of five financial ratios. A company that trips four or more of the five is ineligible.
To limit churn, existing index members are only removed if they fail the screen in each of their two most recent annual filing periods. New additions are blocked if they fail in either one.
Why Bitcoin treasury firms are exposed
The rules replace a temporary measure from 2025. That measure had frozen certain index changes for companies whose digital asset holdings made up 50% or more of their total assets. Those companies will now be assessed under the new framework.
Strategy and Japan’s Metaplanet, whose balance sheets are dominated by Bitcoin, are the most prominent firms in that group. Ether treasury company SharpLink was also reportedly flagged in an earlier MSCI simulation.
What removal would mean
If Strategy is excluded, funds that track MSCI indexes would have to sell its shares. JPMorgan analysts previously estimated that an MSCI exclusion could trigger about $2.8 billion of forced selling in Strategy stock.
That selling could weigh on the share price and narrow the premium Strategy trades at over the value of its Bitcoin holdings.
What Strategy has said
Michael Saylor had urged MSCI to drop what he called a “discriminatory” rule.
In August, Strategy posted on X: “Digital assets are assets. Index providers should measure markets, not decide which assets companies are allowed to own.”
What happens next
The 11 November list is the key date. Until then, it is not confirmed which companies fail the test, or whether the two-period buffer keeps any current members in the indexes for now.
