MSCI Sets November Test for Strategy and Metaplanet

TLDR

• MSCI approved new rules that could exclude Strategy and Metaplanet from its global equity indexes.
• The provider will announce affected companies on November 11, with changes effective after November 30.
• Companies must fail an initial operating asset screen and at least four additional financial tests.
• JPMorgan previously estimated that Strategy could face approximately $2.8 billion in index-related stock outflows.
• Strategy disputes the proposed classification and maintains that its Bitcoin treasury qualifies as an operating business.

---

MSCI has adopted new rules that could remove Strategy (MSTR) and Japan’s Metaplanet from major global stock indexes. The index provider will publish its final list of affected companies on November 11.

The policy targets companies that mainly hold investments rather than run operating businesses. MSCI will apply the changes after markets close on November 30, following an industry consultation launched in August.

How MSCI Will Test Companies

MSCI will first check whether a company has enough assets linked to business operations. Those that fail will face five further financial tests covering spending, cash flow, asset values and outside funding.

Companies flagged under at least four of those five tests cannot enter the indexes. Existing members must generally fail in both of their two latest annual reporting periods before MSCI removes them. The provider may also consider recent published interim company filings.

Strategy and Metaplanet Face Review

An earlier trial using May data identified Strategy, Metaplanet and British uranium investor Yellow Cake for possible deletion. None has received a final removal decision under the new review.

Strategy recently bought another 250 Bitcoin, taking its holdings to 848,250 BTC. Its October 12 regulatory filing also recorded $192.4 million spent repurchasing STRC preferred shares.

Strategy disputes its proposed classification. Executive Chairman Michael Saylor has said the firm operates a software business and a Bitcoin treasury business, rather than functioning as an investment fund.

In an August post on X, Saylor argued that MSCI should reflect the market rather than judge which companies belong. His statement matched Strategy’s formal objection to the proposed tests.

Index Funds Face Possible Share Sales

Separately, Strive announced another Bitcoin purchase while seeking financing through preferred shares. If MSCI removes Strategy, funds tracking its indexes may have to sell MSTR stock.

JPMorgan analysts previously estimated $2.8 billion in potential outflows under an earlier exclusion plan. Such sales would involve Strategy shares, not its Bitcoin reserves, but could affect future equity financing.

Ahead of the decision, Saylor discussed Bitcoin and digital credit in a recent interview. MSCI also plans to end its temporary restrictions on companies with large digital asset holdings.

The November 11 review will determine which current members face exclusion. Until MSCI releases that list, Strategy and Metaplanet remain candidates rather than confirmed deletions.