MSCI adopts 'non-operating company' rules that could drop Strategy from its indexes

Index provider MSCI said on Thursday it will adopt its proposed "non-operating companies" methodology, a change that could push Strategy (MSTR), Metaplanet and Upexi out of its global equity indexes, Cointelegraph and The Block reported.

What MSCI decided

Under the rules first floated in August, companies that MSCI classes as non-operating become ineligible for the MSCI Global Investable Market Indexes — benchmarks tracked by a large pool of passive funds.

• MSCI will judge companies on their operating assets and five financial ratios. Failing at least four of the five can make a company ineligible.
• Firms already in the indexes generally have to fail the screen over two annual reporting periods before they are removed.
• The final deletion list is due on Nov. 11 and takes effect on Nov. 30, 2026.

When the proposal came out, MSCI identified Strategy, Metaplanet and Upexi as companies that would be deleted. Several other crypto-treasury firms — including SharpLink (SBET), Ton Strategy (TONX), Solana Company (HSDT) and DeFi Development Corp. (DFDV) — were put on a watchlist for possible removal.

Why it matters

Funds that track an index have to sell a stock when it leaves that index. For companies whose business model is mainly holding bitcoin or other tokens on the balance sheet, losing that automatic passive demand could weigh on the share price.

JPMorgan analysts previously estimated that Strategy's exclusion could trigger about $2.8 billion of selling — though that figure related to MSCI's earlier digital-asset proposal, not the rules adopted this week.

Strategy's view

Strategy objected to the plan in August but also played down the impact. It said funds tracking the affected MSCI indexes held roughly 13 million of its shares, or 3.1% of basic shares outstanding — less than a single day's trading volume, according to the company.

Strategy keeps adding to its stack: Cointelegraph notes its holdings recently reached 848,250 BTC. If you prefer exposure without company risk, see our comparison of bitcoin ETFs vs buying bitcoin directly.