Global index provider MSCI has adopted new eligibility rules that could remove Bitcoin treasury companies Strategy and Metaplanet from its widely followed equity indexes, introducing stricter criteria for distinguishing operating businesses from investment-oriented entities.In an October 15 announcement, MSCI confirmed that the revised methodology will be implemented during its November 2026 Index Review, taking effect after the market close on November 30. The final list of affected companies will be published on November 11.The decision follows months of consultation over whether publicly traded companies accumulating cryptocurrencies should qualify for inclusion in benchmarks designed primarily to represent operating businesses.Strategy, the largest publicly traded corporate Bitcoin holder, and Japan-based Metaplanet were identified as potential exclusions in an earlier simulation. However, neither company’s removal has been formally confirmed under the final methodology.
New Financial Tests Replace Cryptocurrency-Specific Restrictions
MSCI’s updated framework expands existing exclusions covering investment funds, business development companies and other passive investment vehicles to include corporations exhibiting similar financial characteristics.Companies will initially undergo a screening process assessing whether they possess substantial operating assets. Those failing this assessment will face five additional financial tests examining their operating assets, expenses, cash flows, fair-value changes and reliance on external capital.A company triggering at least four of the five financial indicators will be classified as ineligible. The original proposal included thresholds such as operating assets below 20% of total assets, operating expenses below 5%, negative operating cash flow and significant dependence on capital raising.MSCI has also introduced safeguards intended to limit unnecessary index turnover. Existing constituents must fail the eligibility assessment across both of their two most recent annual reporting periods before removal. Companies seeking inclusion can be rejected after failing either period.The methodology replaces temporary restrictions imposed on digital asset treasury companies whose cryptocurrency holdings represented at least 50% of total assets.Those restrictions had prevented certain share-count adjustments, increases in inclusion factors and new index additions. They will be discontinued when the revised rules become effective.
Strategy and Metaplanet Face Passive Investment Risks
A simulation using May 2026 data previously identified Strategy, Metaplanet and uranium investment company Yellow Cake as potential removals from the MSCI All Country World Investable Market Index.Ethereum treasury company SharpLink was among the companies flagged for additional monitoring, demonstrating that the methodology could affect businesses holding digital assets beyond Bitcoin.The financial implications extend beyond index classification. Investment funds tracking MSCI benchmarks may need to sell securities removed from their underlying indexes, potentially generating substantial passive investment outflows.JPMorgan analysts previously estimated that excluding Strategy from MSCI indexes could trigger approximately $2.8 billion in passive selling. That figure represents an earlier scenario estimate rather than a confirmed forecast under the finalized methodology.Strategy has opposed the proposed treatment, arguing that it unfairly disadvantages digital asset treasury companies and could undermine confidence in MSCI’s index construction practices. MSCI, meanwhile, maintains that the framework addresses the broader distinction between operating enterprises and entities primarily accumulating investment assets, rather than targeting cryptocurrency businesses exclusively.The November 11 announcement will establish which companies face removal, providing investors with greater clarity before the November 30 implementation date.For cryptocurrency treasury companies, the decision introduces another consideration alongside Bitcoin prices, financing costs and share valuations: whether their business models qualify for inclusion in global equity benchmarks.