MSCI Index Rules Shift: Strategy and Metaplanet Face Exclusion Under New Non-Operating Criteria

Woofun AI reports that MSCI's August consultation introduces a broad methodology for non-operating companies, placing Strategy and Metaplanet at risk of index exclusion due to their heavy Bitcoin holdings. The core conflict centers on whether these firms qualify as operating businesses or investment vehicles.

Using May 2026 data, the proposed rules would delete three existing constituents, including Strategy and Metaplanet, from MSCI indices. A final decision on this methodology is expected in October, marking a significant shift in index eligibility criteria.

The debate originated in September 2025 when Metaplanet announced a 385 million-share offering, stating that 95% of proceeds would fund Bitcoin purchases. MSCI subsequently reviewed digital asset treasury companies, initially proposing to exclude firms where digital assets comprised at least 50% of total assets.

Strategy opposed this crypto-specific approach in January 2026, arguing that index eligibility should be consistent across asset classes. MSCI dropped the Bitcoin-specific proposal but retained the fundamental question: when does a listed company resemble an investment vehicle more than an operating business?

The August methodology addresses this without singling out Bitcoin. Companies with operating assets above 50% of total assets remain eligible. Those below this threshold face five additional tests; failing at least four renders a company ineligible for index inclusion.

A 'persistence rule' governs removal, requiring failure across two consecutive annual filing reviews for deletion. Companies failing only on their latest review are placed on a watchlist. This explains why SharpLink is on the watchlist while Strategy and Metaplanet are in the deletion group.

Yellow Cake PLC, whose principal exposure is uranium, is also included among the three deletions. Its presence clarifies that the methodology targets investment-heavy corporate structures broadly, not just digital asset holdings, demonstrating the rule's asset-class neutrality.

Woofun AI data shows that while Strategy maintains an enterprise analytics software business, its 2025 annual report notes Bitcoin constitutes the "vast bulk" of assets. Purchases are financed via equity and debt offerings, triggering MSCI's fair-value test and operating-asset intensity evaluations.

Strategy's free-float-adjusted market capitalization stands at approximately $23.93 billion, whereas Metaplanet's is roughly $654 million. MSCI does not disclose individual test results for either, but both meet deletion criteria under the May simulation, highlighting scale differences in impact.

Market feedback is open until September 30, with results due by October 16 for the November 2026 Index Review. While passive fund outflows are not forecasted, exclusion could alter fundraising economics for both firms, signaling a definitive end to Bitcoin-specific regulatory ambiguity.