MSCI finalizes index rules that put Strategy, crypto treasury firms at risk of exclusion

MSCI will adopt new rules that could lead to Strategy (MSTR), the world's largest publicly traded bitcoin holder, being excluded from its indexes, following a consultation on the eligibility of non-operating companies.

The methodology, effective with the November index review, will assess companies using screens for operating assets and five financial ratios, replacing interim restrictions targeting companies with digital asset holdings representing at least 50% of total assets.

"To reduce index turnover, buffers will apply to both the eligibility thresholds of the financial ratios and the timing of index inclusion and removal," MSCI wrote Thursday on its website. "Non-constituents will be ineligible for addition if they fail the ineligibility screen in either of their two most recent annual filing periods."

Current constituents will be removed if they fail the ineligibility screen in each of the two most recent annual filing periods, MSCI said. The firm may also use the most recent interim filing if available.

MSCI's proposal would screen out companies with mainly non-operating assets, with Strategy, Metaplanet and Yellow Cake flagged in a May 2026 simulation. The proposal could also impact Ethereum treasury firm SharpLink.

Strategy Executive Chairman Michael Saylor and CEO Phong Le spoke out at MSCI earlier this year, calling it "discriminatory" against digital asset treasuries.

"If adopted, the proposal would have no meaningful impact on Strategy's business, but it would profoundly harm MSCI's reputation as a reliable and neutral index provider," Strategy wrote in a September letter.

MSCI will publish the final list of potentially affected companies on Nov. 11.