Strategy has faced fresh uncertainty over its place in major stock indexes after MSCI approved rules that could exclude companies whose assets resemble investment funds.
MSCI announced on October 15 that the new eligibility rules will take effect after the November 30 market close. The decision puts Michael Saylor's Bitcoin treasury company under review alongside several other listed firms.
Strategy shares fell 4.2% on October 16 following the announcement. The company remains part of the MSCI USA and MSCI World indexes, which many investment funds use to determine their stock holdings. Its removal is not final, but exclusion could prompt funds tracking those benchmarks to sell their shares.
MSCI's new rules target businesses that function mainly as investment vehicles rather than operating companies. The index provider already excludes investment funds, business development companies and other passive investment vehicles from its Global Investable Market Indexes.
Under the new process, MSCI will first examine whether a company holds substantial operating assets. Those failing that test will face five financial checks. Companies flagged by at least four of the five can become ineligible. Existing index members must fail the screening across their two most recent annual filing periods before removal.
The decision follows an earlier MSCI proposal targeting Bitcoin treasury companies. MSCI postponed that plan in January and broadened its review to cover businesses with similar financial structures.
The financial risk for Strategy comes from funds tracking MSCI benchmarks. These funds generally adjust their portfolios when an index adds or removes a company.
JPMorgan analysts previously estimated that MSCI exclusion could trigger USD 2.8 billion in Strategy share sales. However, that figure remains an estimate rather than a confirmed withdrawal. Actual selling would depend on fund holdings and market conditions.
Strategy has challenged the proposed classification. During the consultation, the company argued that its Bitcoin business qualifies as an operating activity and that MSCI's approach unfairly targets digital asset treasury firms.
The company estimated that funds tracking MSCI's global indexes held approximately 3.1% of its basic shares outstanding, equivalent to about 13 million shares.
In its opposition to MSCI's proposed index rules, Strategy questioned the distinction between operating and non-operating assets. It maintained that its Bitcoin treasury business operates within established accounting standards.
Japan’s Metaplanet joins Strategy on MSCI's preliminary list of potential removals. Meanwhile, Ethereum treasury company SharpLink appears on a watchlist for further assessment rather than immediate deletion.
The revised rules do not automatically exclude every business holding Bitcoin or other cryptocurrencies. Instead, MSCI will evaluate companies using their operating assets and financial ratios.
MSCI plans to publish its final list of affected companies on November 11, ahead of the November 30 implementation. The index provider will discontinue its earlier restrictions on companies whose digital assets account for at least 50% of total assets. It will assess those companies under the new rules during the November review.
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