MSCI Adopts Rule That Puts Strategy at Risk of Index Removal

MSCI has adopted a new rule that will bar non-operating companies from its global equity indexes, a decision that puts Strategy, the world's biggest corporate holder of bitcoin, at risk of removal. Reuters reported on Friday, October 16 that the rule was adopted on Thursday and takes effect at the close on November 30, as part of MSCI's November index review. The final list of affected companies is due on November 11.

Strategy shares fell 2.7 percent in premarket trading on Friday, Reuters said, while Barron's put the early fall at 3 percent even as bitcoin rose more than 1 percent to about 82,050 dollars. The stock had closed on Thursday up 5.62 percent at 151.29 dollars, before the announcement landed after the US close.

What the rule does

MSCI runs a two stage test. The first stage checks whether a company has substantial operating assets. Companies that fail move to a second screen built on five financial ratios, covering operating assets, operating cash flow and dependence on outside funding. A company flagged on four or more ratios loses index eligibility.

The rule extends exclusions that already apply to investment funds. For companies already inside an index, removal needs a failure in each of the two most recent annual filing periods, so the November 30 start date does not by itself take Strategy out.

Who is on the list

Strategy and Japan's Metaplanet sit on MSCI's list of possible deletions, Reuters said. BigGo Finance reported that a provisional list, based on financial data as of September 30, names both companies, along with UK uranium holder Yellow Cake. SharpLink and several other crypto treasury companies sit on a watchlist.

The review began a year ago, when MSCI proposed excluding digital asset treasury companies on the ground that they resemble investment funds. On October 10, 2025, MSCI set interim measures for companies whose digital assets made up half or more of total assets. It deferred the exclusion plan in January 2026 and opened a broader review of all non-operating companies, then published the wider proposal in August 2026.

Why the stakes are high

Strategy holds 848,250 bitcoin and sits in the MSCI USA and MSCI World indexes. Its market value was about 64.3 billion dollars at Thursday's close. Funds that track MSCI indexes hold about 13 million Strategy shares, close to 3.1 percent of its basic shares outstanding, and passive funds must hold the stocks inside an index. JPMorgan has estimated that an exclusion could force about 2.8 billion dollars of selling, an estimate made under the earlier proposal. Strategy warned last year that an exclusion would see 2.8 billion dollars of its stock liquidated.

Strategy pushes back

In a statement on Friday, Strategy called the proposal misguided and said it targets digital asset treasury companies. The company said MSCI's operating and non-operating terms are undefined, have no basis in US accounting rules or international standards, and appear designed to reach a set outcome.

An index removal is not a stock exchange delisting, and it would not force Strategy to sell any bitcoin. It would change who holds the shares, and it could make it harder for bitcoin treasury companies to raise money. The next date that matters is November 11.