Michael Saylor · Bitcoin · U.S. Treasury · Strategy · Decrypt
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MSCI has finalized a rule change that threatens to boot Bitcoin treasury companies like Michael Saylor’s Strategy from its widely tracked equity indexes, a move that could cut off a significant source of passive investment demand for their shares.
Key facts
- MSCI has finalized a rule change that threatens to boot Bitcoin treasury companies like Michael Saylor’s Strategy from its widely tracked equity indexes, a move that could cut off a significant
- The new methodology screens for corporate issuers that lack substantial operating assets and behave more like passive investment vehicles than real businesses
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- To limit index churn, MSCI built in buffers: current index constituents will only be removed if they fail the screen in each of their two most recent annual filing periods, while new additions
Summary
MSCI finalized a rule treating “non-operating companies” as ineligible for its Global Investable Market Indexes, effective Nov. 30, using a core screen plus a five-ratio exclusion test. The change targets Bitcoin treasury firms like Strategy and Metaplanet whose balance sheets are dominated by crypto, and scraps a temporary 2025 reprieve for companies with 50%+ digital-asset holdings; the affected list comes Nov. 11. Removal would force index-tracking funds to sell the shares; Saylor called the rule “discriminatory. In an announcement dated Oct. 15, the index provider said it will treat “non-operating companies” as ineligible for inclusion in the MSCI Global Investable Market Indexes, implementing a proposal it floated in August with minor modifications.