MSCI To Drop Strategy And Metaplanet Under New Index Rule
MSCI will remove Strategy and Metaplanet at the close on 30th November under its new screen for non-operating companies.
MSCI said on 11th November that it would remove Strategy’s Class A shares from the MSCI USA Index and Metaplanet from the MSCI Japan Small Cap Index. The changes take effect at the close of business on 30th November.
MSCI’s list of companies affected by the new screen identifies both removals as results of that screen. The list also shows that Upexi will be deleted from the US micro-cap segment, a size group below small cap. MSCI placed Sharplink on its watchlist, where it is listed as a small-cap member.
Under the rule MSCI adopted in October, the provider first asks whether a company has substantial operating assets. If it fails that test, MSCI applies five financial ratios. An existing member can be removed only if it fails at least four ratio tests in each of its two latest annual filing periods. A company outside the indexes can be barred from joining if it fails the screen in either period. MSCI can also consider newer interim accounts when available.
Before MSCI adopted the rule on 15th October, Strategy opposed it during consultation. It said its Bitcoin (BTC) business is an operating segment in its accounts and argued that the change would have little effect on the company. At the time, it put the holdings of funds tracking the MSCI Global Investable Market Indexes at 3.1% of its basic shares outstanding.
The removal covers Strategy’s Class A common shares. Its recent repurchases of preferred shares concern a different class of stock. Another public Bitcoin treasury company, Strive, raised funds through a new preferred issue in October.
In January’s consultation decision, MSCI declined to adopt a proposal aimed specifically at digital asset treasury companies. It said investor feedback pointed to a wider group of companies that resembled investment funds, and it would look at eligibility more broadly. The October rule followed that review.
From the November review, MSCI will end the interim limits it introduced in 2025 for companies on its list of firms with at least half their assets in digital assets. Those limits froze certain increases to index weights and deferred additions or moves between size groups. MSCI says the new tests will govern those companies’ eligibility.
