MSCI approves index exclusion rules putting Strategy and Metaplanet at risk of removal

MSCI has approved new eligibility rules that could remove Michael Saylor’s Strategy (MSTR) and Japan’s Metaplanet from its global equity indexes, following a consultation on how to classify companies with limited operating activities.

The index provider announced Thursday that it will classify qualifying nonoperating companies as ineligible for inclusion in its Global Investable Market Indexes. The changes will take effect at the close of November 30, with the final list of affected companies expected on November 11.

Strategy and Metaplanet were among three companies identified for potential removal in MSCI’s initial assessment. The decision could trigger substantial selling pressure from passive investment funds that track the affected indexes.

Strategy faces potential $2.8 billion in outflows

In its August consultation, MSCI proposed a screening process to identify companies whose assets are primarily held for investment rather than used in operating businesses.

The methodology evaluates companies based on their operating assets, expenses, cash flow, changes in asset valuations, and dependence on external financing.

Under the proposed framework, companies that fail the operating asset test and at least four of five additional financial screens would become ineligible for inclusion. Existing index constituents would generally need to fail the tests across two consecutive annual assessments before removal.

MSCI’s initial simulation, using May 2026 data, identified Strategy, Metaplanet, and UK uranium investment company Yellow Cake as potential deletions from the MSCI ACWI Investable Market Index.

Meanwhile, JPMorgan analysts previously estimated that Strategy could face approximately $2.8 billion in stock outflows if removed from MSCI indexes. The figure could increase substantially if other major index providers adopted similar restrictions.

The potential selling would come from investment funds required to adjust their portfolios to match index composition, rather than from Strategy selling its Bitcoin holdings.

Saylor challenges MSCI’s classification

Strategy has opposed the proposed restrictions, arguing that its Bitcoin treasury business should not disqualify it from major equity benchmarks.

In a previous statement, Saylor described Strategy as an operating company with a software business and a Bitcoin treasury strategy, rejecting comparisons with investment funds.

The company has also argued that its Bitcoin treasury operations constitute a distinct business segment and that the proposed financial screens could misclassify its activities.

The dispute comes as Bitcoin treasury companies increasingly rely on equity and debt financing to accumulate digital assets. Exclusion from major indexes could reduce demand for their shares and make future capital raising more difficult.

However, MSCI’s approval of the new methodology does not automatically confirm the removal of every company identified in its initial assessment. Strategy’s final status will depend on the November 11 review.

Strategy shares fell as much as 4.3% in after hours trading following the announcement before recovering some losses. The stock remained down 1.5% in extended trading.