Strategy Inc. has publicly opposed a proposal from index provider MSCI that could make the company ineligible for major global stock indexes, a change that may force benchmark-tracking funds to reduce or sell their holdings in the stock.

The dispute centers on a proposed screening process for what MSCI describes as “non-operating” companies. Strategy, the largest publicly listed corporate holder of bitcoin, said on Aug. 14 that digital assets are assets and argued that index providers should reflect markets rather than decide what kinds of assets companies are allowed to hold.

How MSCI’s proposed screen would work

MSCI’s consultation sets out a two-step eligibility test aimed at companies whose value growth comes mainly from assets held on the balance sheet rather than revenue generated by an operating business. Under the framework, a company that does not pass the initial test would then be evaluated against five financial measures.

Those five measures are operating asset intensity, expense intensity, operating cash flow, fair value intensity, and capital dependence. A company that is flagged on four of the five would be considered ineligible for the Global Investable Market Indexes under the proposal.

The timing of any removal would depend on whether the company is already in the indexes. New entrants could become ineligible after a single filing, while existing constituents would need to fail in two consecutive annual filings before being deleted. MSCI plans to publish the consultation outcome by mid-October, and any rule change could take effect in November 2026.

Why Strategy is at the center of the proposal

In a simulation published by MSCI in May 2026, Strategy was identified as the only large-cap company among three that could be removed from the ACWI IMI if the new screen is adopted. MSCI put Strategy’s float-adjusted market value at about $23.93 billion in that exercise.

The issue carries particular weight because Strategy has built its profile around a large bitcoin treasury. The company’s reserves have continued to expand, and the source article said Strategy has also signaled ongoing purchases. Its response to MSCI therefore framed the debate as one about whether holdings such as digital assets should count as legitimate corporate assets for index inclusion purposes.

Potential market impact if MSTR is excluded

A removal from MSCI’s Global Investable Market Indexes would matter beyond classification alone. Funds that track those benchmarks generally adjust their portfolios to match index changes, which means a deletion could trigger forced selling of Strategy shares.

JPMorgan analysis cited in the source article estimated that an exclusion could lead to roughly $2.8 billion in passive fund outflows tied to benchmark-tracking products. That figure remains an estimate linked to a proposal that has not yet been adopted, but it illustrates why the consultation has drawn attention from both Strategy and market participants.

What happens next

The consultation remains open, with feedback due by Sept. 30. MSCI is expected to release the results by Oct. 16, a timetable that could feed into the November 2026 Index Review.

For now, the proposed screen is still under review rather than in force. The next confirmed milestone is MSCI’s publication of the consultation outcome, which will determine whether the eligibility changes proceed and whether Strategy’s status in the global indexes is put at risk.

Source: news.bitcoin.com