MSCI has finalized new index eligibility rules that could remove Michael Saylor's Strategy (MSTR) and Japan's Metaplanet from its Global Investable Market Indexes, potentially triggering billions of dollars in passive fund selling.

The decision broadens restrictions on companies classified as non-operating businesses, concluding months of consultation over whether Bitcoin treasury companies belong in traditional equity benchmarks. The changes will take effect with MSCI's November 2026 Index Review.

Neither Strategy nor Metaplanet has been formally removed. An earlier MSCI simulation, based on May 2026 data, identified both companies — along with Yellow Cake, a UK-listed uranium investment firm — as potential deletions. Ethereum treasury company SharpLink was among three additional firms placed on a proposed watchlist.

MSCI Introduces Five Financial Tests for Index Eligibility

The new screening framework first evaluates whether a company holds substantial operating assets, then applies five financial tests covering operating assets, expenses, operating cash flow, fair-value changes and dependence on external financing. Companies that fail the initial operating-assets assessment and trigger at least four of the five financial indicators become ineligible for index inclusion.

Existing constituents are afforded an additional safeguard: removal requires failures across their two most recent annual reporting periods. Companies seeking new inclusion can be rejected after failing in either period, and MSCI may also consider interim financial statements.

The methodology replaces earlier restrictions targeting companies whose digital asset holdings represented at least 50% of total assets. Those measures limited share-count adjustments and certain additions without immediately removing existing constituents.

JPMorgan's $2.8 Billion Selling Estimate Faces Strategy's Pushback

A potential exclusion could force index-tracking funds to rebalance their portfolios by selling affected securities, regardless of their investment outlook. JPMorgan previously estimated approximately $2.8 billion in potential MSTR outflows if MSCI removed Strategy, though that November 2025 estimate was prepared under the earlier exclusion proposal rather than the methodology finalized this week.

Strategy has challenged MSCI's classification, arguing that its Bitcoin treasury operations and financial products constitute an active business rather than a passive investment vehicle. The company calculated that funds tracking MSCI's Global Investable Market Indexes held approximately 13 million MSTR shares — equivalent to 3.1% of its basic shares outstanding — a position representing roughly 60% of its average daily trading volume over the preceding 30 trading days. Strategy also disputes the accounting basis for classifying its business as non-operating, maintaining that its Bitcoin activities qualify as an operating segment under U.S. accounting standards.

Strategy's Bitcoin Holdings Reach 848,250 BTC Ahead of November Review

The index decision arrives as Strategy continues adjusting its Bitcoin holdings and capital structure, with its stock valuation remaining closely tied to Bitcoin prices, financing obligations and institutional investor demand.

The company's latest Bitcoin purchases increased its holdings to 848,250 BTC as of October 11. It also repurchased approximately $192 million of STRC preferred shares and reported approximately $5.5 billion in combined U.S. dollar reserves and cash, according to its October 12 corporate disclosure, which detailed continued capital management through MSTR share issuance, Bitcoin purchases and preferred-stock repurchases.

MSCI will publish the final list of affected index constituents on November 11, 2026. Confirmed deletions and other constituent changes will become effective after the November 30 market close.