- MSCI plans to adopt a methodology that would exclude non-operating companies from its global index, which could affect Bitcoin treasury firms.
- Strategy and Metaplanet appear on MSCI’s simulation list of companies facing removal, while Bitmine, Upexi, Cypherpunk Technologies, and DeFi Development are on a watchlist.
- MSCI will publish its final list of affected companies on November 11.
MSCI, the index provider, has moved toward adopting a new rule set that could remove several crypto treasury companies from its global investable market indexes. Strategy and Metaplanet, both of which hold bitcoin as a core part of their balance sheets, are named among the firms that could be dropped. The final decision is scheduled for November 11.
What Happened
MSCI launched a consultation in August on a proposal to classify certain corporate issuers as non-operating companies. The category covers firms whose characteristics resemble those of investment funds and Business Development Companies (BDCs). The consultation aimed to define which issuers would fall under that label and how they would be screened.
The methodology uses two stages. The first screen asks whether a corporate issuer has substantial operating costs. Issuers that fail this initial test move to a second, exclusion screen. That screen evaluates five non-industry-specific financial ratios: operating asset intensity, expense intensity, cash flow, fair value intensity, and capital dependence. An issuer flagged on at least four of the five ratios would be excluded.
MSCI has said it will publish the final list of companies facing exclusion on November 11. Under the framework, constituents that fail the ineligibility screen in two of their most recent annual filings would be removed.
The index provider also released a simulation showing which companies could be affected under the methodology. Strategy and Metaplanet appear on that simulated list of likely removals. Crypto treasury firms Bitmine, Upexi, Cypherpunk Technologies, and DeFi Development are on a watchlist, meaning they were not shown as removals in the simulation but are being monitored under the same criteria.
MSCI noted that the new methodology will replace the interim measures it had applied to digital asset treasury companies. Those interim measures were a temporary arrangement, and the new framework is intended to supersede them following the November 2026 Index Review announcement.
On the market side, the Strategy stock was down more than 1% in overnight trading, at $149, according to TradingView data cited in the original report.
Why It Matters
For investors, index membership carries practical consequences. Many passive funds and institutional mandates track MSCI benchmarks, so removal from a widely followed global index can change the demand a stock receives from index-linked vehicles. A company dropped from an index may face selling pressure from funds that must rebalance, while inclusion or exclusion decisions can also influence how analysts and institutions view a company’s standing.
For the crypto market, the proposal raises a question about how traditional index providers should classify companies whose main assets are digital tokens rather than operating businesses. Strategy and Metaplanet have drawn attention because their share prices are often discussed alongside bitcoin’s price, so a change in how they are treated by a major index provider could be read as a signal about institutional acceptance of crypto treasury strategies. Market participants may also watch whether similar rules are adopted by other index providers.
The methodology’s financial ratios are not specific to crypto. They are designed to capture the characteristics of companies that look more like investment vehicles than operating businesses. That means the outcome for digital asset treasury firms depends on how their financial profiles compare with the thresholds, not only on their crypto holdings.
Market Context
Digital asset treasury companies are publicly listed firms that hold cryptocurrency on their balance sheets. Strategy and Metaplanet are among the better-known examples. Their share prices have often moved with bitcoin, and their index status has been a topic of discussion among investors because index inclusion can affect trading volumes and institutional ownership.
MSCI’s approach reflects a broader debate in equity markets about how to classify companies whose value depends largely on a single asset or on financial structures rather than on operating activities. The use of a two-step screen, with a test for operating costs followed by financial ratio analysis, is a rules-based attempt to draw that line. The consultation process gave market participants an opportunity to comment on how the definition of non-operating companies should be framed before MSCI reached its current position.
The interim measures that MSCI had applied to digital asset treasury companies are being replaced by the new methodology. This transition suggests that the index provider is seeking a permanent framework rather than case-by-case treatment for crypto-linked firms.
What to Watch Next
- The November 11 announcement: MSCI’s final list will show which companies, if any, face exclusion under the adopted methodology. The simulated list is not the final outcome.
- Financial filings: Because removal depends on results in two of the most recent annual filings, companies’ reported financial figures will be central to the outcome.
- The watchlist names: Bitmine, Upexi, Cypherpunk Technologies, and DeFi Development are being monitored and could be affected depending on how their ratios develop.
- Share price reaction: Trading in Strategy and Metaplanet shares around the announcement and final decision may reflect investor expectations about index changes.
- Responses from other index providers: Observers may watch whether other major index firms take similar steps for digital asset treasury companies.
Source: original report