MSCI index rule changes put Strategy, crypto treasury firms at risk of exclusion

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MSCI index rule changes

Highlights

MSCI will implement new index eligibility rules in November 2024, screening firms by operating assets and five financial ratios with buffers to limit turnover.
Strategy, Metaplanet, Yellow Cake, and SharpLink risk exclusion from MSCI indexes due to non-operating asset criteria, as flagged in a May 2026 simulation.
MSCI will publish the final list of affected companies on Nov. 11, threatening index inclusion and passive fund demand for crypto treasury-heavy firms like Strategy.

New methodology for non-operating asset screens

As reported by The Block, citing MSCI, the index provider will apply new eligibility rules that assess companies through screens for operating assets and five financial ratios. The methodology, published Thursday on its website, is set to take effect with the November index review and is designed to replace interim restrictions aimed at companies whose digital asset holdings represent at least half of total assets.

MSCI said buffers will apply to both the eligibility thresholds of the financial ratios and the timing of index inclusion and removal in an effort to reduce index turnover. Current constituents are set to be removed if they fail the ineligibility screen in each of their two most recent annual filing periods, while the firm may also use the most recent interim filing if one is available.

In a May 2026 simulation, MSCI flagged Strategy, Metaplanet and Yellow Cake under the proposal because of their mainly non-operating assets. Ethereum treasury firm SharpLink could also be affected under the final rules, and MSCI said it will publish the final list of potentially affected companies on Nov. 11.

Implications for crypto treasury companies

For Strategy, the world's largest publicly traded bitcoin holder, the rule change raises the prospect of exclusion from MSCI indexes even though the company argues the proposal does not alter its underlying business. The decision keeps pressure on listed companies that hold large digital asset treasuries and rely on broad index inclusion for investor visibility and passive fund demand.

Strategy Executive Chairman Michael Saylor and CEO Phong Le spoke out against MSCI earlier this year, describing the approach as discriminatory toward digital asset treasuries. In a September letter, Strategy said that if the proposal were adopted it would have no meaningful impact on its business, but would damage MSCI's reputation as a reliable and neutral index provider.

Our earlier article on India’s disinvestment programme explained that most proceeds since FY 2016 have come via market-linked routes such as ETFs, public offerings and buybacks, while strategic sales have contributed relatively little. It also highlighted how the planned IDBI Bank stake sale stands out in scale and could materially improve the government’s ability to meet its annual targets after several years of shortfalls.

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