MSCI adopts index exclusion rules that could oust Strategy
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Index provider MSCI has adopted new rules that could lead to the removal of Strategy, Metaplanet, and Upexi from its global indexes, with several other crypto treasury companies potentially facing exclusion. The methodology targets “non-operating companies” by assessing operating assets and five financial ratios, with companies failing four out of five tests deemed ineligible. MSCI will release the final list of removals on November 11, with changes taking effect on November 30, 2026.
Why it matters
The exclusion of companies like Strategy from MSCI indexes could force funds tracking those indexes to sell affected shares, potentially putting downward pressure on stock prices and reducing passive investment demand. This matters as tens of millions of people hold default portfolio positions in such indexes without actively choosing those companies.
Key context
MSCI had identified Strategy as a candidate for removal under the "non-operating companies" methodology proposed earlier in August. The new rules require companies to fail screening over two annual reporting periods before removal from indexes. JPMorgan analysts previously estimated a potential $2.8 billion in selling pressure from Strategy’s exclusion, though that was based on earlier proposals, not the current final rules. Strategy opposed the changes but noted that MSCI-indexed funds hold a relatively small share of its stock.
Key numbers and entities
Companies mentioned include Strategy (MSTR), Metaplanet, Upexi, Sharplink Inc (SBET), Ton Strategy Company (TONX), Solana Company (HSDT), and DeFi Development Corp. (DFDV). Final removal list due November 11, effective November 30, 2026. JPMorgan estimated $2.8 billion in potential selling pressure related to Strategy’s exclusion under prior proposals. Strategy holds 3.1% of its shares in MSCI-indexed funds, about 13 million shares.
What remains unclear
The final list of companies to be removed remains unreleased as of the source publication. Details on how the five financial ratios are calculated or the exact criteria for "non-operating" status are not fully elaborated. The broader industry impact or responses from other affected companies beyond Strategy and MSCI’s official statements are not provided.