MSCI has finalized a new eligibility rule for its Global Investable Market Indexes that will make “non-operating companies” ineligible, closing a consultation process it launched in August. The index provider said the list of affected companies will be published on November 11, with any removals taking effect after the market close on November 30.
The decision replaces temporary measures MSCI had used for companies holding more than 50% of their assets in digital assets. While the earlier approach focused on crypto-related balance sheets, the new framework is broader and targets companies that resemble passive investment vehicles rather than operating businesses.
How the new screen works
MSCI said the new test has two stages. First, a company must show that more than half of its total assets are operating in nature. If it does not clear that threshold, MSCI then applies five financial ratio tests: operating asset intensity, expense intensity, operating cash flow, non-operating fair value intensity, and capital dependence.
A company becomes ineligible if it is flagged on four or more of those five measures. For companies already in MSCI indexes, removal is not automatic after a single weak period: they are removed only if they fail in each of their two most recent annual filing periods, a condition that may give some current constituents extra time.
Which companies are in focus
MSCI did not identify any company by name in its final decision. But in an earlier simulation tied to the consultation, it flagged Strategy, Metaplanet, and Yellow Cake as names that could be affected.
The change is therefore being watched closely by bitcoin treasury-style companies, particularly Strategy and Tokyo-listed Metaplanet. Both benefited from inclusion in broad equity indexes that channel passive investment flows, and those same index mechanics could now work in reverse if they are ruled ineligible.
Why Strategy matters most
JPMorgan has estimated that removing Strategy from MSCI indexes could lead to about $2.8 billion of selling. In November, the bank had put the figure as high as $8.8 billion in a scenario where other index providers adopted a similar stance.
Even so, an index removal would not be the same as a Nasdaq delisting, and it would not require Strategy to sell its bitcoin. The company has said it reports its bitcoin business as an operating segment under US GAAP, which is expected to form part of its case before MSCI publishes its November 11 list. Strategy’s latest disclosed bitcoin purchase was 250 BTC, bringing its total holdings to 848,250 BTC.
The timing is notable because Strategy’s capital structure has already drawn scrutiny. Earlier reporting said dividend obligations had become a structural driver of bitcoin sales, while another report said the company sold stock rather than bitcoin to fund its reserve during a quiet week. Its shares also fell below $100 in June, and the company has been supporting a preferred stock that has traded under par.
Broader implications for passive ownership
MSCI first floated the idea of excluding digital asset treasury companies in late 2025. In January, it chose not to remove them during its February review, instead opening a wider consultation on non-operating companies. That delayed the immediate risk, but did not eliminate it.
The effects of index treatment extend beyond specialist investors. Broad equity benchmarks can also shape indirect exposure held through large institutional and sovereign portfolios. Earlier reporting said Norway’s sovereign wealth fund had record indirect exposure equivalent to 11,549 BTC, almost entirely through Strategy shares owned via broad stock indexes rather than direct bitcoin purchases.
What happens next is now clear in process, if not outcome. MSCI’s rule is final, but the identities of the companies to be removed are still unknown until November 11. Any confirmed deletions would then take effect after the close on November 30, and whether other index providers follow MSCI’s approach remains an open question.
Source: www.blockhead.co