MSCI proposes removing Strategy, Metaplanet from indexes in $2B test

MSCI's proposed non-operating company screen could force up to $2 billion in passive outflows from Strategy and Metaplanet.

MSCI proposed removing Bitcoin treasury companies Strategy and Metaplanet from its Global Investable Market Indexes, a change that could trigger up to $2 billion in forced selling by index-tracking funds.

The proposal, opened for public comment through Sept. 30, applies a two-stage financial test designed to catch companies that behave like investment vehicles rather than operating businesses, according to MSCI's consultation document. Companies first pass automatically if operating assets exceed 50 percent of total assets; those falling below that threshold face a second test covering five financial ratios, including operating asset intensity, operating cash flow and reliance on outside capital. Failing four of five flags would make a company ineligible.

Strategy holds 840,447 BTC as of Aug. 9, per its latest SEC filing, while Metaplanet reports 43,000 BTC on its corporate tracker. A May 2026 simulation flagged both companies, plus uranium holder Yellow Cake PLC, for deletion from the MSCI ACWI IMI. Strategy's free float-adjusted market capitalization stands at $23.93 billion, Yellow Cake at $1.81 billion and Metaplanet at $654 million.

MSCI expects to announce its decision by Oct. 16, with any changes taking effect at the November 2026 Index Review. A removal would force passive funds tracking MSCI benchmarks to sell, with JPMorgan earlier estimating $2.8 billion in potential outflows for Strategy alone. Current estimates put the figure at $1.8 billion to $2 billion based on recent pricing.

How the screen works

The proposal replaces an earlier crypto-only exclusion MSCI shelved in January after industry pushback. That version applied a 50 percent digital asset threshold, which Strategy called "arbitrary" and argued singled out crypto holdings while ignoring other concentrated asset classes. The new methodology applies financial tests across industries rather than targeting Bitcoin specifically — the presence of Yellow Cake, a physical uranium holder with no crypto exposure, in the simulated deletions illustrates the broader approach.

Existing constituents get a buffer: they must fail the screens across two consecutive annual filings before deletion, rather than one. Three additional companies, including Ethereum treasury firm SharpLink, would land on a new public watchlist under the May simulation. SharpLink reported 888,938 ETH and ETH equivalents as of Aug. 3 and said equity financing remains one of its main sources of liquidity.

What's at stake

Strategy has continued its capital-raising playbook, netting 175,000 BTC versus 7,000 sold in recent months, and raised about $653.1 million through MSTR share sales during the week of Aug. 9, most of which went into its U.S. dollar reserve. The company also sold 1,690 BTC for $108.6 million to repurchase STRC preferred stock. That continuous dependence on capital markets is precisely what triggers MSCI's capital-dependence flag.

Metaplanet, which joined the MSCI Japan Index in February 2025, has built the world's third-largest corporate Bitcoin treasury largely through share issuance. The Tokyo-listed firm posted $20 million in H1 2026 profit despite the BTC price crash, yet its funding model — issuing equity and debt to accumulate Bitcoin — is the structure MSCI's screen is designed to identify.

The outcome could set a precedent for how index providers treat the broader wave of public companies adopting digital assets as a primary treasury strategy. Other corporate Bitcoin holders, including Trump Media, which boosted its holdings to 14,139 BTC, could face similar scrutiny in future reviews if the framework is adopted.

This article is for informational purposes only and does not constitute investment advice.