MSCI has finalized a new methodology for assessing whether companies with large non-operating asset holdings remain eligible for its indexes, a change that could affect firms including Strategy, Metaplanet and Yellow Cake. The updated rules will take effect as part of MSCI’s November index review, with the final list of companies affected due on Nov. 11.
The decision follows a consultation on so-called non-operating companies and replaces an interim approach that focused on businesses whose digital asset holdings accounted for at least 50% of total assets. MSCI’s revised framework broadens that review by looking at operating assets alongside a set of financial ratios.
A broader screen for non-operating companies
Under the final methodology, MSCI will evaluate companies using screens tied to operating assets and five financial ratios. The new approach is meant to identify companies whose balance sheets are dominated by assets that are not part of an operating business, rather than relying only on a threshold linked to digital asset holdings.
That marks a shift from the interim restrictions MSCI had used earlier, which targeted companies with digital assets representing at least half of total assets. By moving to a wider set of tests, the index provider is applying a framework that can reach beyond crypto treasury companies alone.
How additions and removals will be handled
MSCI said it will apply buffers to both the financial-ratio thresholds and the timing of index inclusion or removal in an effort to limit unnecessary index turnover. The company also set out separate rules for firms seeking entry to an index and for those already included.
According to MSCI, a non-constituent will be barred from addition if it fails the ineligibility screen in either of its two most recent annual filing periods. Existing constituents will be removed if they fail the screen in each of the two most recent annual filing periods, and MSCI may also consider the most recent interim filing when available.
Which companies may be affected
In a simulation published in May 2026, MSCI flagged Strategy, Metaplanet and Yellow Cake as companies that could be screened out under the proposal. The final rules now raise the prospect that those firms could lose index membership once the November review is completed.
The proposal could also affect SharpLink, which has been identified as an Ethereum treasury firm. MSCI has not yet published the final roster of companies that will be impacted under the adopted methodology.
Reaction and next step
Strategy’s leadership has criticized MSCI’s approach, arguing that the rule would be discriminatory toward digital asset treasury companies. The company has also said that, if the proposal were adopted, it would not have a meaningful effect on Strategy’s business, though it would damage MSCI’s standing as a neutral and reliable index provider.
The next confirmed milestone is Nov. 11, when MSCI is expected to publish the final list of potentially affected companies as part of the November index review. That disclosure should clarify whether Strategy, Metaplanet, Yellow Cake, SharpLink or others will ultimately remain in MSCI’s indexes.
Source: www.theblock.co