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- MSCI finalized index eligibility rules that could exclude crypto treasury companies like Strategy from its Global Investable Market Indexes.
- The new framework uses an initial asset screen and five financial tests to evaluate non-operating companies for index inclusion or removal.
- Strategy opposed the proposal, arguing that its Bitcoin business constitutes an operating activity.
MSCI has finalized index eligibility rules that could exclude crypto treasury companies, including Strategy, from its Global Investable Market Indexes. The decision introduces a broader test for non-operating companies, with individual removal decisions still pending ahead of November’s review.
MSCI Screens Assets, Spending, and Cash Generation
The framework starts with a company’s assets. Businesses with operating assets representing at least 50% of total assets pass the initial screen. Those below that level face five financial tests, with failure on at least four making them ineligible, subject to reporting-period requirements.
The tests examine assets used in business operations, spending on core activities, cash generation, changes in the value of non-operating holdings and reliance on external financing to accumulate assets.
For existing constituents, flags include operating assets below 10% of total assets, core business expenses below 5% of total assets and nonpositive funds from operations. The remaining tests assess whether asset revaluations dominate financial results and whether capital raising funds asset accumulation.
MSCI Gives Current Constituents a Two-Period Buffer
Existing constituents must fail the screens in both of their two most recent annual filing periods before removal. Companies seeking inclusion are barred if they fail in either assessed annual period. MSCI may also consider the latest interim filing.
Current constituents receive less stringent thresholds on some measures. For example, the financing cash-flow threshold is 30% of total assets, compared with 20% for new entrants, alongside evidence that capital was raised to accumulate assets. MSCI said the buffers are intended to reduce index turnover.
Strategy Disputes MSCI’s Classification of Its Bitcoin Business
MSCI’s simulation using May 2026 data identified Strategy, Metaplanet, and Yellow Cake for deletion under the proposed rules. SharpLink appeared on a proposed watch list, rather than the simulated deletion list. Those historical results do not establish November’s outcomes.
Strategy opposed the proposal during the consultation, arguing that its Bitcoin business constitutes an operating activity. In its published response, the company criticized MSCI’s approach:
“The proposal injects MSCI’s own policy judgments into index construction, undermining the neutrality and reliability that MSCI’s customers depend on.”
Strategy says it reports its Bitcoin business as an operating segment.
MSCI Replaces Treasury Restrictions in November
MSCI decided in January to retain eligible crypto treasury companies in its February review while pursuing a broader assessment of non-operating businesses.
MSCI will discontinue its interim crypto treasury restrictions with November’s review. These covered companies whose digital assets represented at least half of total assets and limited certain index adjustments, additions, and movements between size segments.
The final affected-company list is due Nov. 11, with changes taking effect at the close of Nov. 30. Confirmed deletions could prompt selling by funds tracking affected benchmarks. Fund managers may trade before or after index changes, however, and portfolio approaches differ. MSCI has not quantified potential outflows.
