MSCI has finalized new eligibility rules that could remove Michael Saylor’s Strategy (MSTR) and Japan’s Metaplanet from its Global Investable Market Indexes, potentially triggering billions of dollars in passive fund selling.
The decision introduces broader restrictions on companies classified as non-operating businesses, following months of consultation over whether Bitcoin treasury companies belong in traditional equity benchmarks. The changes will take effect with MSCI’s November 2026 Index Review.
Strategy and Metaplanet have not yet been formally removed. An earlier MSCI simulation, based on May 2026 data, identified both companies and UK-listed uranium investment firm Yellow Cake as potential deletions. Ethereum treasury company SharpLink was among three additional firms placed on a proposed watchlist.
MSCI Introduces Five Financial Tests for Index Eligibility
The new screening framework evaluates whether a company holds substantial operating assets before applying five financial tests covering operating assets, expenses, operating cash flow, fair-value changes and dependence on external financing.
Companies failing the initial operating-assets assessment and triggering at least four of the five financial indicators become ineligible for index inclusion.
Existing constituents face an additional safeguard requiring failures across their two most recent annual reporting periods before removal. Companies seeking new inclusion can be rejected after failing during either period. MSCI may also consider interim financial statements.
The methodology replaces earlier restrictions targeting companies whose digital asset holdings represented at least 50% of total assets. Those measures had limited share-count adjustments and certain index additions without immediately removing existing constituents.
JPMorgan’s $2.8 Billion Selling Estimate Faces Strategy’s Pushback
Potential exclusion could force index-tracking funds to rebalance their portfolios by selling affected securities, regardless of their investment outlook.
JPMorgan previously estimated approximately $2.8 billion in potential MSTR outflows if MSCI removed Strategy. That November 2025 estimate was prepared under the earlier exclusion proposal, rather than the methodology finalized this week.
Strategy has challenged MSCI’s classification, arguing that its Bitcoin treasury operations and financial products constitute an active business rather than a passive investment vehicle.
The company calculated that funds tracking MSCI’s Global Investable Market Indexes held approximately 13 million MSTR shares, equivalent to 3.1% of its basic shares outstanding. That position represented roughly 60% of its average daily trading volume over the preceding 30 trading days.
Strategy also disputes the accounting basis for classifying its business as non-operating, maintaining that its Bitcoin activities qualify as an operating segment under U.S. accounting standards.
Strategy’s Bitcoin Holdings Reach 848,250 BTC Ahead of November Review
The index decision arrives as Strategy continues adjusting its Bitcoin holdings and capital structure, while its stock valuation remains closely tied to Bitcoin prices, financing obligations and institutional investor demand.
Strategy’s latest Bitcoin purchases increased its holdings to 848,250 BTC as of October 11. The company also repurchased approximately $192 million of STRC preferred shares and reported approximately $5.5 billion in combined U.S. dollar reserves and cash.
Its October 12 corporate disclosure detailed continued capital management through MSTR share issuance, Bitcoin purchases and preferred-stock repurchases.
MSCI will publish the final list of affected index constituents on November 11, 2026. Confirmed deletions and other constituent changes will become effective after the November 30 market close.
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