MSCI Finalizes Rules That Put Strategy’s Index Membership at Risk
The new screening method could exclude Strategy and Metaplanet, with MSCI set to name affected companies in November.
Key takeaways
- MSCI adopted rules that could make some investment-heavy companies ineligible for its global indexes.
- The final list is due Nov. 11, with changes taking effect after the Nov. 30 close.
MSCI has adopted rules that could remove Strategy and Metaplanet from its global equity indexes, putting their shares at risk of sales by funds that track those indexes. The final list of affected companies is due Nov. 11, and changes are scheduled to take effect after trading closes on Nov. 30.
The method screens companies for substantial operating assets and then assesses five financial ratios. A company that fails at least four tests may be deemed ineligible; existing index members generally must fail across two annual reporting periods before removal.
JPMorgan analysts previously estimated that Strategy’s exclusion could trigger about $2.8 billion in stock outflows. Cointelegraph noted that estimate related to MSCI’s earlier digital-asset proposal, not the rules adopted Thursday. Any forced selling would involve shares, not necessarily Strategy’s bitcoin holdings.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
