MSCI adopts new index exclusion rules that could remove Strategy, Metaplanet and Upexi

MSCI finalizes rules that may drop crypto treasury firms

Index provider MSCI has adopted a new methodology that could remove several companies with large cryptocurrency holdings from its global indexes. Strategy, Metaplanet and Upexi were previously identified for deletion under the new rules. Several other crypto treasury companies have been placed on a watchlist for potential exclusion.

MSCI said it will adopt the methodology, which was first proposed in August, to make “non-operating companies” ineligible for inclusion in its Global Investable Market Indexes. The final list of companies to be removed will be announced on Nov 11 and take effect on Nov 30, 2026.

Key details of the new rules

• MSCI will screen companies based on their operating assets and five financial ratios.


• Companies that fail at least four of the five tests could be deemed ineligible.


• Existing companies already in the index must generally fail the screening over two annual reporting periods before removal.


• The methodology is designed to identify “non-operating companies,” meaning firms whose primary business is holding cryptocurrency rather than running an operating business.

Companies affected so far

Under the methodology, MSCI has already flagged Strategy (MSTR) for deletion. Metaplanet and Upexi were also previously identified for deletion. On the watchlist for potential removal are Sharplink (SBET), Ton Strategy Company (TONX), Solana Company (HSDT) and DeFi Development Corp (DFDV).

What could happen if companies are removed

Removal from MSCI indexes could force funds that track those indexes to sell the affected companies’ shares. This could reduce passive investment demand and put downward pressure on stock prices. JPMorgan analysts previously estimated that Strategy’s exclusion could trigger roughly $2.8 billion in selling, though that figure was based on an earlier digital asset proposal, not the rules adopted Thursday.

Conner Brown, executive director of the Bitcoin Policy Institute, said in September that index removal “removes a company from the default portfolios of tens of millions of people who never chose to remove it.”

Strategy’s response

In August, Strategy opposed the changes but downplayed the potential disruption. The company said funds tracking MSCI’s Global Investable Market Indexes hold approximately 13 million shares, representing 3.1% of its basic shares outstanding. Strategy added that those holdings amount to less than one day’s trading volume.

Why this matters for crypto-related stocks

Exclusion from major global indexes could reduce visibility and liquidity for crypto treasury companies, as many institutional investors use index funds as a default investment vehicle. The move signals a broader shift by index providers to distinguish between traditional operating businesses and companies whose main asset is cryptocurrency.

Next steps

MSCI will publish the final list of excluded companies on Nov 11, 2026. Any changes will take effect on Nov 30, 2026.

Sources

• Cointelegraph