MSCI rules could remove Strategy from global indexes
MSCI adopted rules that could remove Strategy, Metaplanet and Upexi from its global indexes. The final list is due Nov. 11, with changes taking effect Nov. 30, 2026.
MSCI adopted a methodology on Oct. 15 that could remove Strategy, Metaplanet and Upexi from its global indexes. The final list of affected companies is due Nov. 11, and the changes are scheduled to take effect Nov. 30, 2026.
The methodology, proposed in August, would make “non-operating companies” ineligible for inclusion in the MSCI Global Investable Market Indexes. It targets companies whose assets and activities do not meet MSCI’s definition of an operating business.
MSCI will assess companies using their operating assets and five financial ratios. Companies that fail at least four tests could become ineligible. Existing index constituents will generally have to fail the screening process during two annual reporting periods before removal.
MSCI previously identified Strategy as a company that would be deleted under the methodology. Metaplanet and Upexi also face possible removal. Sharplink, Ton Strategy Company, Solana Company and DeFi Development Corp. are among the companies on a watchlist for potential exclusion.
Funds that track MSCI indexes may need to sell shares of companies removed from the benchmarks. JPMorgan analysts previously estimated that Strategy’s removal could trigger about $2.8 billion in selling. The estimate was based on an earlier digital-asset proposal and does not reflect the rules adopted Thursday.
Strategy opposed the proposed changes in August. The company said funds tracking MSCI’s Global Investable Market Indexes held about 13 million of its shares, equal to 3.1% of its basic shares outstanding. It described those holdings as less than one day of average trading volume.
“[Broad-market index exclusion] removes a company from the default portfolios of tens of millions of people who never chose to remove it,” Conner Brown, executive director of the Bitcoin Policy Institute, said in September while discussing Strategy’s potential exclusion.
Strategy has continued to increase its bitcoin holdings and has reported holdings of 848,250 BTC.
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