MSCI has approved new eligibility rules that could see Michael Saylor's Strategy (MSTR) and Japan's Metaplanet, a Bitcoin treasury company, removed from its global equity indexes, following a consultation on how to classify companies with limited operating activities.

The index provider said Thursday that companies qualifying as nonoperating under its updated methodology will be deemed ineligible for inclusion in its Global Investable Market Indexes. The changes take effect at the close of November 30, and the final list of affected companies is due on November 11.

Strategy and Metaplanet were among three companies flagged for potential removal in MSCI's initial assessment. The move could trigger significant selling pressure from passive investment funds that track the affected indexes.

Strategy could face $2.8 billion in outflows

MSCI's August consultation proposed a screening process designed to identify companies whose assets are primarily held for investment rather than deployed in operating businesses.

The methodology assesses companies on their operating assets, expenses, cash flow, changes in asset valuations, and reliance on external financing. Under the framework, firms that fail the operating asset test along with at least four of five additional financial screens would become ineligible for index inclusion. Existing constituents would generally need to fail the tests in two consecutive annual assessments before being removed.

An initial MSCI simulation using May 2026 data identified Strategy, Metaplanet, and Yellow Cake, a UK uranium investment company, as potential deletions from the MSCI ACWI Invest Market Index.

JPMorgan analysts previously estimated that Strategy could face approximately $2.8 billion in stock outflows if removed from MSCI indexes, a figure that could increase substantially if other major index providers adopted similar restrictions.

The potential selling would come from investment funds required to realign their portfolios with index composition, not from Strategy selling its Bitcoin holdings.

Saylor challenges MSCI's classification

Strategy has opposed the proposed restrictions, arguing that its Bitcoin treasury business should not disqualify it from major equity benchmarks. In a previous statement, Saylor described Strategy as an operating company with a software business and a Bitcoin treasury strategy, rejecting comparisons with investment funds.

The company has also argued that its Bitcoin treasury operations constitute a distinct business segment, and that the proposed financial screens could misclassify its activities.

The dispute comes as Bitcoin treasury companies increasingly rely on equity and debt financing to accumulate digital assets. Exclusion from major indexes could reduce demand for their shares and make future capital raising more difficult.

MSCI's approval of the new methodology does not automatically confirm the removal of every company identified in its initial assessment, however. Strategy's final status will depend on the November 11 review.

Strategy shares fell as much as 4.3% in after-hours trading following the announcement before recovering some losses. The stock remained down 1.5% in extended trading.