Overview
- MSCI announced on Oct. 15 that it has adopted a formal methodology to classify 'non-operating companies' as ineligible for its Global Investable Market Indexes with a final list to be published on Nov. 11 and exclusions effective after the close of Nov. 30.
- The test first checks whether a company has substantial operating assets and then runs five financial-ratio screens where failing at least four can trigger ineligibility, while existing index members must fail the tests across two consecutive annual filing periods before removal.
- An earlier MSCI simulation using May 2026 data flagged Strategy (MSTR), Japan’s Metaplanet and U.K. miner Yellow Cake as possible deletions and placed firms such as SharpLink on a watchlist, but the Nov. 11 review will determine final status.
- Removal would force funds that track MSCI benchmarks to sell the affected shares, a move analysts say could trigger large passive outflows (JPMorgan previously estimated about $2.8 billion for Strategy) and reduce demand that those companies rely on for equity financing while not requiring them to sell their crypto holdings.
- Targeted firms have publicly disputed the classification as unfair and opaque, critics warn the tests rely on a non-standard notion of 'operating assets,' and market participants say the change could reshape how crypto-treasury firms raise capital and run their balance sheets.