MSCI approves rules that could eject Strategy, Metaplanet from equity indexes

MSCI, one of the world's biggest stock index providers, finalized rules proposed in August that could remove shares of leading bitcoin BTC$82.071,33-holding companies Strategy MSTR and Metaplanet (3350) from its global equity indexes.

Under the rules announced Thursday, companies that mostly hold investments rather than running a real business will be deemed ineligible for MSCI's Global Investable Market Indexes. The final list of affected firms is due Nov. 11 and the change takes effect at the close of Nov. 30.

The decision is important because it affects demand for the companies’ shares. Many investors gain exposure to stock markets by placing their money in funds that track an index. When a company is added to the index, those funds must buy its stock. When it is removed, they must sell, whatever the fund managers think of the company.

"The MSCI episode highlights a growing tension between traditional index construction and the rise of companies that treat Bitcoin as a core treasury asset rather than a secondary holding,” decentralized infrastructure network ZEROBASE said on X. “Passive capital has become an important source of demand for these stocks; any sustained reduction in that bid could tighten the equity-issuance window that several of them rely on to fund further purchases."

The risk is biggest for Tysons Corner, Virginia-based Strategy, the largest publicly listed bitcoin holder, with 848,250 BTC worth about $69.67 billion, according to Bitcoin Treasuries. It tends to fund its purchases by selling preferred shares such as STRC and STRK.

JPMorgan analysts have estimated that index exclusion could trigger outflows of about $2.8 billion from MSTR stock. The shares closed at $151.29 on Thursday, down about 72% from their record high of $543 in November 2024. Tokyo-based Metplanet, which closed at 277 yen ($1.75) on Friday, peaked at 1,930 yen in June 2025, according to TradingView.

Any selling would hit the shares, not bitcoin. The funds would be dumping the stock, which does not necessarily mean Strategy would sell its bitcoin.

But weaker demand for the shares could make it harder for these companies to raise the money they use to buy more bitcoin, a strategy they have long pursued to stack up more coins.

Strategy's founder, Michael Saylor, has described the company as an operating business with a software arm, and its bitcoin treasury as a distinct business segment. He has rejected comparisons with investment funds. Strategy, originally MicroStrategy, sells business intelligence software to companies including Coca-Cola and Porsche.

MSCI already excludes investment funds and similar vehicles. The new rules extend that to companies that look like them.

First, MSCI checks whether a company has substantial operating assets, meaning assets tied to a real business. If it fails, the company faces a second test based on five financial ratios covering expenses, cash flow, changes in asset values and reliance on outside financing. A company flagged on four or more of the five is ineligible.

To avoid constant churn in the index, MSCI has added buffers. A member is removed only if it fails the screen in each of its two most recent annual filing periods. A company outside the index is blocked from joining if it fails in either of its two most recent periods.