MSCI Confirms Strategy And Metaplanet Removal From Its Global Indexes

MSCI announced on November 11 that it is removing Strategy from its MSCI USA Index and Metaplanet from its Japan Small Cap Index, the first companies cut under the index provider's new rules for what it calls "non-operating" firms. The changes take effect at the close of trading on November 30, with implementation landing December 1.

WHY THEY FAILED THE SCREEN

MSCI adopted the new eligibility framework on October 15. Under it, a company is ruled ineligible for the Global Investable Market Indexes if its operating assets fall short of a 50% threshold and it also fails at least four of five financial ratio tests across its last two annual filings. The rule replaces an earlier, narrower threshold that applied specifically to companies holding 50% or more of their assets in digital assets. Strategy and Metaplanet were both marked "Deleted" after failing the screen in both of their most recent annual filings.

THE MONEY ON THE LINE

JPMorgan analysts estimated that a removal could trigger approximately $2.8 billion in forced selling from passive funds that track MSCI's benchmarks, a figure that could climb as high as $8.8 billion if other major index providers adopt similar rules. In an August 31 letter, Strategy executive chairman Michael Saylor and chief executive Phong Le disclosed that funds tracking the index held roughly 13 million MSTR shares, about 3.1% of the company's basic shares outstanding.

The selling pressure lands on the equity, not the balance sheet. Index deletion does not force Strategy or Metaplanet to sell any Bitcoin, and nothing in MSCI's rule mentions the asset directly. Strategy continued buying through the review period and held 850,364 bitcoin as of November 8, acquired at an average price of $75,456.

STRATEGY PUSHED BACK

Saylor and Le had called the proposed treatment "discriminatory, arbitrary, and misguided" and asked MSCI to withdraw it, arguing the removal would have no meaningful impact on the company's business. The Bitcoin Policy Institute had separately raised questions about how the rule was developed. Strategy's stock moved lower in after-hours trading following the announcement, extending a decline that has left the shares down more than 20% on the year even as Bitcoin has fallen about 15% over the same stretch.

The deletion pulls passive capital out of Strategy's stock, which is the channel Saylor has leaned on to fund new Bitcoin purchases by issuing equity. Whether that financing model keeps working without index-fund demand underneath it is the part of this story that plays out over the next several weeks, not the decision itself.

This story comes from the Simply Bitcoin Live show. Watch the full episode.