MSCI proposes new screens that could exclude Strategy, Metaplanet from its indexes

Strategy and Metaplanet could be removed from MSCI’s global stock-market index under a proposal that would tighten eligibility rules for companies whose assets and financial performance resemble those of non-operating investment vehicles.

The two leading Bitcoin-focused firms are among three companies MSCI has identified as potential deletions, alongside UK-listed Yellow Cake, while Ethereum-centric Sharplink, Center Laboratories, and Lydia Holding would be put on a watchlist.

The move comes after MSCI backed away from plans to exclude digital asset treasury (DAT) companies from its indexes in the February 2026 review, temporarily easing a major potential threat to Strategy’s index status.

However, at the time, the index provider stated that it planned to conduct a broader consultation on non-operating and investment-oriented companies due to concerns that some DATs may function more like investment funds than traditional operating businesses.

The plan means future index eligibility for DATs remains uncertain, and MSCI’s latest consultation effectively puts the index-exclusion threat back on the table.

MSCI proposes new financial screens to identify non-operating companies

MSCI’s consultation would establish a new definition of “Non-Operating Companies” and make such companies ineligible for the MSCI Global Investable Market Indexes.

The category would include investment funds and BDCs that are already excluded under existing legal-form rules, but would also capture corporate issuers identified through quantitative analysis as having similar characteristics.

The proposal would extend the exclusion to corporate issuers whose financial statements show that they hold substantial non-operating assets, have limited operating activity or cash generation and depend on outside capital and asset-price movements to drive growth and performance.

The framework would use a two-stage assessment. Under the Core Screen, an issuer would need to demonstrate that more than half of its total assets are operating assets to qualify automatically.

Companies that fail that test would then be assessed against five additional financial indicators. These measure operating asset intensity, expense intensity, cash generation, fair value changes and dependence on capital raised for asset accumulation.

An issuer would fail the proposed Exclusion Screen if it triggers at least four of the five indicators.

MSCI has proposed thresholds including operating assets below 20% of total assets, operating expenses below 5%, negative operating cash flow, fair value changes above 5% of total assets and capital dependence above 20%.

The methodology also includes safeguards intended to prevent abrupt index turnover.

Non-constituents could be deemed ineligible based on their latest filings, while existing index constituents would receive buffers and need to fail the relevant screens in two consecutive annual filing periods before being removed.

Companies that fail based only on their latest filing would instead be placed on a public watchlist.

Based on the May 2026 data, the proposal would delete Strategy, Yellow Cake and Metaplanet from the ACWI IMI, according to MSCI.

MSCI’s consultation period runs through Sept. 30, with results expected by Oct. 16. If adopted, the changes would be implemented as part of the November 2026 Index Review.