MSCI Introduces New Rules, Potentially Delisting Crypto Treasury Companies
Global index provider MSCI has officially unveiled new screening rules for “non-operating companies,” a move that could see crypto treasury firms like Strategy, Metaplanet, and SharpLink removed from its indices. The final list of affected companies is expected on November 11.
New Screening Methodology
MSCI announced on Thursday, October 15, its revised criteria for identifying non-operating companies. The new framework will assess companies based on the proportion of operating assets and five financial ratios, replacing previous temporary restrictions on companies holding over 50% of their assets in digital currencies. These new rules, effective from the November index review, place companies such as Strategy (MSTR), Metaplanet, and Yellow Cake at risk of exclusion from MSCI indices.
According to MSCI’s consultation documents, the new methodology evaluates whether a company possesses substantial operating assets, using five financial ratios as screening benchmarks. Companies failing to meet these criteria will be designated as “non-operating” and will not be eligible for index inclusion. This replaces a temporary restriction proposed in May 2026, which directly listed companies with digital assets exceeding 50% of total assets for potential delisting.
Buffers and Transition Periods
MSCI emphasized that to reduce index turnover, the new rules incorporate a two-tiered buffer mechanism. New constituents must pass the qualification screening in “at least one” of the two most recent annual reporting periods to be considered for inclusion. Existing constituents, however, will only be removed if they fail the screening for “two consecutive years.” MSCI also reserves the right to consider the latest interim reports on a case-by-case basis.
In a simulated analysis conducted in May, MSCI had already identified Strategy, Metaplanet, and Yellow Cake as potentially impacted companies. With the formal implementation of these rules, Ethereum treasury company SharpLink may also be subject to exclusion. MSCI will release the final list of affected companies on November 11, at which point the market will have clarity on which firms are definitively delisted.
Strategy’s Opposition
Strategy’s Executive Chairman Michael Saylor and CEO Phong Le strongly opposed MSCI’s proposals in September, sending an open letter accusing MSCI of “discriminating against digital asset treasury companies.” Strategy argued in the letter that while the proposal would have no substantial impact on its business, it would “severely damage MSCI’s reputation as a reliable and neutral index provider.”
Strategy contends that MSCI’s screening rules effectively exclude companies whose primary assets are Bitcoin or Ethereum, which contradicts MSCI’s stated commitment to neutrality. Saylor has repeatedly criticized MSCI in public forums this year, asserting that index providers should not treat digital asset treasury companies as an “anomaly.”
Market Implications
Should MSCI proceed with the exclusion of crypto treasury companies like Strategy and Metaplanet from its indices, Exchange Traded Funds (ETFs) and passive funds tracking MSCI indices would be compelled to adjust their holdings, potentially triggering short-term selling pressure. MSCI indices are tracked by over $10 trillion in global assets, meaning any component adjustments can have ripple effects.
It is noteworthy that MSCI’s current buffer design provides companies already in the index with at least a “two fiscal year” transition period. Strategy, currently part of the Nasdaq 100 index, might only be considered for delisting in the following year if its annual financial reports indicate insufficient operating assets.
MSCI’s rule adjustment reflects the divergence in how the traditional financial system categorizes “crypto treasury companies.” From the perspective of index providers, these companies have an asset structure distinct from traditional operating businesses, deriving value primarily from holding cryptocurrencies rather than productive assets. However, from the cryptocurrency industry’s viewpoint, this represents a rejection of a new asset class by traditional finance.
Market Focus Ahead of November 11
Prior to the November 11 list announcement, market attention is focused on three key areas: whether MSCI will introduce an exemption mechanism for crypto treasury companies, whether Strategy will pursue further legal or public relations countermeasures, and whether other index providers, such as S&P and FTSE Russell, will adopt similar screening for non-operating companies.
