MSCI has approved rules that could remove Strategy and Metaplanet from its global equity indexes. The changes take effect at the close of November 30, and a final list of affected companies is expected on November 11. Strategy disputes the classification.
MSCI approved new eligibility rules that could remove Michael Saylor's Strategy (MSTR) and Japan's Metaplanet from its global equity indexes. The index provider will classify qualifying nonoperating companies as ineligible for its Global Investable Market Indexes, following a consultation on companies with limited operating activities.
The changes take effect at the close of November 30, and MSCI expects to publish the final list of affected companies on November 11. Strategy and Metaplanet were among three companies identified for potential removal in MSCI's initial assessment, which could trigger selling pressure from passive investment funds that track the affected indexes.
How MSCI screens for nonoperating companies
In its August consultation, MSCI proposed a screening process for companies whose assets are primarily held for investment rather than used in operating businesses. The methodology looks at operating assets, expenses, cash flow, changes in asset valuations, and dependence on external financing.
Under the proposed framework, a company that fails the operating asset test and at least four of five additional financial screens would become ineligible. Existing index constituents would generally need to fail the tests across two consecutive annual assessments before removal.
MSCI's initial simulation, using May 2026 data, identified Strategy, Metaplanet, and UK uranium investment company Yellow Cake as potential deletions from the MSCI ACWI Investable Market Index.
JPMorgan analysts estimate Strategy could face approximately $2.8 billion in outflows
JPMorgan analysts previously estimated approximately $2.8 billion in stock outflows if Strategy is removed from MSCI indexes. The figure could increase substantially if other major index providers adopted similar restrictions.
The selling would come from funds that must adjust their portfolios to match index composition, not from Strategy selling its Bitcoin holdings.
Strategy rejects the classification
Strategy has opposed the proposed restrictions, arguing that its Bitcoin treasury business should not disqualify it from major equity benchmarks. In a previous statement, Saylor described Strategy as an operating company with a software business and a Bitcoin treasury strategy, and rejected comparisons with investment funds.
The company has also argued that its Bitcoin treasury operations form a distinct business segment and that the proposed financial screens could misclassify its activities.
MSCI's approval of the methodology does not automatically confirm the removal of every company in its initial assessment. Strategy's final status will depend on the November 11 review.
Source: Crypto Briefing
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