MSCI is considering a new methodology that could remove Strategy and Metaplanet from its Global Investable Market Indexes as early as the November 2026 Index Review.
Summary
- MSCI’s May simulation would delete Strategy, Metaplanet and Yellow Cake under proposed non-operating company screens.
- SharpLink would enter a watchlist because current constituents need two consecutive annual failures before removal.
- Companies failing the core screen become ineligible after triggering four of five financial ratio tests.
- Consultation closes September 30, with results due October 16 and possible November implementation by MSCI.
- MSCI abandoned its earlier crypto-only exclusion proposal in January and promised this broader company review.
A simulation using May data identified the two Bitcoin treasury companies and U.K. uranium investor Yellow Cake as the three existing constituents that would be deleted under the proposed rules.
The proposal remains a consultation, not a final index decision. MSCI’s announcement says feedback remains open through Sept. 30, with results expected by Oct. 16. Any methodology change would then be targeted for the November review. MSCI explicitly warns that the consultation “may or may not” result in the proposed changes.
MSCI proposal replaces the earlier crypto specific test
The current review is broader than MSCI’s earlier attempt to exclude digital asset treasury companies based largely on their crypto holdings. In January, the index provider abandoned that proposal for the February review after investors raised questions about whether a simple asset threshold could distinguish an operating company from an investment vehicle.
As previously reported, MSCI delayed its earlier crypto treasury exclusions and opted for a wider review. Strategy had opposed the previous 50% digital asset threshold, calling it “arbitrary” and arguing that companies holding large concentrations of other assets were not subjected to the same rule.
The new methodology addresses that criticism by applying financial tests across industries rather than singling out Bitcoin or other cryptocurrencies. The presence of Yellow Cake alongside Strategy and Metaplanet in MSCI’s simulated deletions illustrates the broader approach.
Strategy and Metaplanet fail MSCI’s simulated screen
MSCI proposes a two stage test. A company first passes automatically if operating assets exceed 50% of total assets. Companies falling below that level move to a second test based on operating asset intensity, expenses, operating cash flow, non-operating fair value changes and reliance on financing for asset accumulation.
An issuer would be treated as a non-operating company if it triggers at least four of those five flags. For existing constituents, MSCI proposes less restrictive thresholds and requires failure in two consecutive annual reviews before deletion. New candidates would need to fail only the latest review to become ineligible for addition.
Using May 2026 data, MSCI’s simulation would remove Strategy, with a free float adjusted market capitalization of $23.93 billion; Yellow Cake, at $1.81 billion; and Metaplanet, at $654 million. SharpLink, Center Laboratories and Lydia Holding would instead enter a public watchlist because the simulation found only one qualifying period of failure.
SharpLink’s inclusion is notable for the crypto treasury sector. The Nasdaq listed company reported 888,938 ETH and ETH equivalents as of Aug. 3 and said equity financing remains one of its main sources of liquidity. Its filing also says it uses most capital raising proceeds to acquire ETH, although MSCI’s May simulation predates that latest quarterly filing.
Index removal could create passive selling pressure
Deletion would matter because funds designed to track affected MSCI benchmarks would have to adjust their portfolios when the index composition changes. However, MSCI has not published an estimate of possible selling tied to the new proposal, so current claims of a specific forced outflow figure should be treated cautiously.
During the earlier crypto treasury debate, JPMorgan estimated that Strategy could face about $2.8 billion in passive selling if MSCI removed it, with a larger figure possible if other index providers followed. That estimate concerned the previous proposal and should not be presented as a forecast for the new methodology.
Strategy’s balance sheet remains heavily centered on Bitcoin. Its latest SEC filing showed 840,447 BTC as of Aug. 9 after it sold 1,690 BTC for $108.6 million and used the proceeds to repurchase STRC preferred stock. The company also raised about $653.1 million through MSTR share sales during the week, most of which went into its U.S. dollar reserve.
Metaplanet, meanwhile, currently reports 43,000 BTC on its corporate tracker. Its exposure to MSCI dates back to February 2025, when, as crypto.news reported, the company joined the MSCI Japan Index.
What happens next for Strategy and Metaplanet
Nothing has been removed under the new rule yet. MSCI published its regular August Index Review on Aug. 12, with those changes due after the Aug. 31 close, while the separate non-operating company proposal remains scheduled for possible action in November.
The next deadline is Sept. 30, when consultation feedback closes. MSCI expects to announce its decision by Oct. 16. If the methodology is adopted, qualifying deletions could be incorporated into the November 2026 review.
The May simulation also should not be treated as a guaranteed November constituent list. Company filings and financial structures can change, and MSCI’s proposal incorporates annual financial data and persistence tests. The current simulation shows which companies would have failed using the stated May dataset, not an irreversible decision on Strategy, Metaplanet or SharpLink.
