Key Takeaways
- • MSCI adopted new index rules on Thursday, October 16, 2026, that make non-operating companies ineligible for its Global Investable Market Indexes, according to Bloomberg as cited by Quartz.
- • The non-operating company screen takes effect after trading closes on Nov. 30, 2026, as part of the November 2026 Index Review, with MSCI due to publish a definitive list of affected constituents on Nov. 11.
- • Under the framework, issuers failing a core operating-assets screen face an exclusion screen of five financial ratios, and a security is ineligible if flagged on four or more.
- • A May 2026 simulation of the proposal flagged Strategy, Metaplanet and Yellow Cake, and could also affect SharpLink, an Ethereum treasury firm, according to The Block.
- • Strategy, which holds 848,000 bitcoin and is the largest corporate bitcoin holder among listed companies, has been a vocal critic; Michael Saylor called MSCI's position "disappointing."
Summary
MSCI adopted new rules on Thursday that make non-operating companies ineligible for its Global Investable Market Indexes, a change that places Strategy's status as a global benchmark constituent at risk. According to Bloomberg, the framework does not remove Strategy immediately, but sets out financial tests under which the bitcoin holder could lose eligibility. The changes will be implemented as part of the November 2026 Index Review and become effective once trading ends on Nov. 30. MSCI is due to release a definitive roster of affected current constituents on Nov. 11.
Under the methodology, MSCI will first apply a core screen to determine whether an issuer has substantial operating assets. Issuers that fail will face an exclusion screen based on five financial ratios, with a security deemed ineligible if flagged on four or more. To limit index churn, MSCI will build cushions around the ratio cutoffs and around additions and deletions. Non-constituents cannot be added if they fail the screen in either of their last two annual filing periods, while current constituents are dropped only if they miss the screen in both periods. MSCI may rely on the newest interim report when one has been filed.
MSCI will also discontinue the interim measures it announced on Oct. 10, 2025, for companies whose digital asset holdings make up 50% or more of total assets. Those measures had frozen increases to share counts and inclusion factors and deferred additions and size-segment migrations. Eligibility for these companies will now be assessed under the new methodology.
A May 2026 simulation of MSCI's proposal flagged Strategy, Metaplanet and Yellow Cake, according to The Block, which also reported the rules could affect SharpLink, an Ethereum treasury firm. Strategy Executive Chairman Michael Saylor and CEO Phong Le had earlier criticized the proposal as "discriminatory" toward companies holding digital assets in their treasuries. In a September letter, Strategy said the proposal "would have no meaningful impact on Strategy's business, but it would profoundly harm MSCI's reputation as a reliable and neutral index provider." In a Tuesday interview on Bloomberg Television, Saylor said MSCI's position "has been disappointing because they are imposing prejudicial values on digital assets," and argued Strategy belongs in the operating-company category rather than being treated as a holding company.
Under the methodology, MSCI will first apply a core screen to determine whether an issuer has substantial operating assets. Issuers that fail will face an exclusion screen based on five financial ratios, with a security deemed ineligible if flagged on four or more. To limit index churn, MSCI will build cushions around the ratio cutoffs and around additions and deletions. Non-constituents cannot be added if they fail the screen in either of their last two annual filing periods, while current constituents are dropped only if they miss the screen in both periods. MSCI may rely on the newest interim report when one has been filed.
MSCI will also discontinue the interim measures it announced on Oct. 10, 2025, for companies whose digital asset holdings make up 50% or more of total assets. Those measures had frozen increases to share counts and inclusion factors and deferred additions and size-segment migrations. Eligibility for these companies will now be assessed under the new methodology.
A May 2026 simulation of MSCI's proposal flagged Strategy, Metaplanet and Yellow Cake, according to The Block, which also reported the rules could affect SharpLink, an Ethereum treasury firm. Strategy Executive Chairman Michael Saylor and CEO Phong Le had earlier criticized the proposal as "discriminatory" toward companies holding digital assets in their treasuries. In a September letter, Strategy said the proposal "would have no meaningful impact on Strategy's business, but it would profoundly harm MSCI's reputation as a reliable and neutral index provider." In a Tuesday interview on Bloomberg Television, Saylor said MSCI's position "has been disappointing because they are imposing prejudicial values on digital assets," and argued Strategy belongs in the operating-company category rather than being treated as a holding company.
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