In a significant move for the cryptocurrency sector, MSCI has announced its adoption of a new methodology that targets what it classifies as “non-operating companies.” This decision, finalized on Thursday, may see Strategy (MSTR), along with Metaplanet and Upexi, dropped from MSCI’s Global Investable Market Indexes. The final list of removals is set to be published on November 11, with the changes taking effect by November 30, 2026.
Under the new rules, companies will be evaluated based on their operating assets and five financial ratios. A company that fails at least four of these tests could be deemed ineligible for inclusion in the indexes. This shift is a departure from earlier interim limits that primarily focused on companies holding digital assets worth at least 50% of their total assets.
Current market sentiment surrounding Strategy (MSTR) is already affected, with analysts from JPMorgan estimating that the potential exclusion could trigger approximately $2.8 billion in selling pressure. This estimate, however, pertains to earlier proposals and may not fully encapsulate the ramifications of the newly adopted methodology.
As part of MSCI’s review process, several other firms associated with cryptocurrencies are now under scrutiny. SharpLink (SBET), Ton Strategy (TONX), Solana Company (HSDT), and DeFi Development (DFDV) have landed on a watchlist, indicating that while they are not yet removed, they may face future exclusion if they continue to fail the necessary financial screens.
It’s worth noting that being placed on the watchlist does not equate to immediate removal; it serves as a warning that companies must improve their standing to avoid being cut in subsequent evaluations. MSCI has implemented protective buffers to manage index turnover effectively, which means that only companies facing sustained financial difficulties will be removed.
The implications of these changes are considerable, particularly for index funds that track MSCI indexes. Should Strategy (MSTR) be removed, funds would likely be compelled to divest their holdings, which could exert downward pressure on the stock price and diminish passive demand.
Critics of MSCI’s broad index exclusion, including Conner Brown, executive director of the Bitcoin Policy Institute, have voiced concerns about the potential impact of these changes. They argue that such actions effectively remove companies from the portfolios of millions of investors who have not chosen to divest.
Michael Saylor, Executive Chairman of Strategy, and CEO Phong Le have described the proposed changes as “discriminatory” against firms holding digital asset treasuries. In a letter released in September, they asserted that the new measures would not significantly impact Strategy’s business but could tarnish MSCI’s reputation as a neutral index provider.
In a separate update, Strategy recently increased its Bitcoin holdings by acquiring 250 BTC, raising its total to 848,250 BTC. With the final list of removals set to be published on November 11, the crypto community will be closely monitoring the developments surrounding Strategy’s status in MSCI’s indexes.
