Index provider MSCI has adopted new methodology rules that could lead to the removal of Strategy, Metaplanet, and Upexi from its Global Investable Market Indexes. Announced on Thursday, the updated framework renders "non-operating companies" ineligible for inclusion, a change proposed in August. Under this new standard, MSCI will assess firms based on their operating assets and five specific financial ratios; companies failing at least four of these tests may be deemed ineligible. Existing index constituents must generally fail the screening process over two annual reporting periods before facing removal.
MSCI previously identified Strategy (MSTR) among the entities slated for deletion under this non-operating companies methodology. Additionally, Sharplink Inc. (SBET), Ton Strategy Company (TONX), Solana Company (HSDT), and DeFi Development Corp. (DFDV) have been placed on a watchlist for potential exclusion. The final list of companies to be removed is scheduled for release on November 11, with the changes taking effect on November 30, 2026.
The exclusion carries significant market implications, as it forces funds tracking MSCI indexes to sell the affected shares, potentially pressuring stock prices and reducing passive investment demand. Conner Brown, executive director of the Bitcoin Policy Institute, noted in September that such removals eliminate companies from the default portfolios of tens of millions of investors who did not actively choose to divest. Earlier estimates from JPMorgan analysts suggested that Strategy’s exclusion from MSCI indexes could trigger approximately $2.8 billion in selling.
MSCI's adoption of stricter eligibility criteria for non-operating companies marks a pivotal shift in how traditional finance categorizes digital asset treasury firms. By tying index inclusion to operational metrics rather than mere balance sheet holdings, the index provider effectively decouples speculative crypto exposure from mainstream passive investment vehicles. This move signals a maturation of regulatory and institutional standards, demanding that listed companies demonstrate substantive business operations beyond holding volatile assets like Bitcoin.
The immediate consequence is a structural risk for firms heavily reliant on passive inflows from ETFs and mutual funds tracking MSCI benchmarks. For companies like Strategy, which have leveraged index inclusion to support their valuation models, exclusion could precipitate a liquidity crunch and downward price pressure. Investors should monitor the November 11 announcement closely, as the specific application of the five-ratio test will determine whether these entities can retain their status or face forced liquidation by index-tracking funds, fundamentally altering their capital access strategies.
