MSCI Adopts Rules That Could Push Strategy Out of Global Indexes

MSCI confirmed on Thursday that it will adopt a methodology first proposed in August, making non operating companies ineligible for its Global Investable Market Indexes. Strategy (MSTR), Metaplanet and Upexi were earlier identified for removal, while Sharplink (SBET), Ton Strategy Company (TONX), Solana Company (HSDT) and DeFi Development Corp. (DFDV) sit on a watchlist.

How the Screening Works

MSCI will review each company’s operating assets and five financial ratios. Failing at least four of the five can make a company ineligible. Firms already in the indexes generally must fail across two annual reporting periods before they are removed.

Forced Selling Risk for Crypto Treasury Stocks

Removal would push funds tracking MSCI indexes to sell the shares, which could pressure prices and cut passive demand. Conner Brown of the Bitcoin Policy Institute said in September that exclusion removes a company from the default portfolios of millions of people who never chose that. JPMorgan analysts earlier estimated about $2.8 billion in selling for Strategy, though that figure was based on the earlier proposal.

Strategy’s Response and Key Dates

Strategy opposed the changes in August but played down the impact, saying tracking funds hold about 13 million shares, or 3.1% of its basic shares outstanding, less than one day of trading volume. MSCI will release its final list on Nov. 11, effective Nov. 30, 2026.