MSCI Drops Strategy and Metaplanet from Global Indexes in Latest Review

MSCI, the global index provider, has announced the exclusion of Strategy (formerly MicroStrategy) and Metaplanet from its widely tracked global indexes, effective after the close of trading on May 30, 2025. The decision follows the latest quarterly index review, which adjusts constituents based on market capitalization, liquidity, and other eligibility criteria.

Background and Context

Both companies have drawn significant investor attention in recent years due to their substantial holdings of Bitcoin. Strategy, under the leadership of Michael Saylor, has transformed itself into a corporate Bitcoin treasury, amassing over 500,000 BTC. Metaplanet, a Japanese firm, has adopted a similar strategy, branding itself as a ‘Bitcoin treasury company.’

However, MSCI’s methodology primarily focuses on market size and liquidity thresholds. The removal suggests that these companies no longer meet the minimum requirements for inclusion in the MSCI Global Investable Market Indexes (GIMI), which underpin numerous exchange-traded funds (ETFs) and institutional portfolios worldwide.

Market Implications

Exclusion from MSCI indexes typically triggers forced selling by passive funds that track these benchmarks. For Strategy and Metaplanet, this could mean short-term downward pressure on their share prices as index-tracking funds adjust their holdings. However, active investors may view the move as an opportunity to buy at potentially discounted levels, especially if they believe in the long-term value of the companies’ Bitcoin strategies.

It is important to note that MSCI’s review is based on quantitative criteria, not on the business models or strategic direction of the companies. The exclusion is a technical adjustment, not a negative assessment of their operational performance.

Impact on Investors and Index Funds

Investors holding shares of Strategy or Metaplanet through index funds will see their exposure automatically reduced to zero as of the effective date. This rebalancing is part of the normal quarterly process that ensures indexes remain representative of their target markets. For those directly holding the stocks, the exclusion may affect liquidity and visibility, but it does not change the fundamentals of the companies.

What This Means for the Crypto-Market Correlation

The removal of these two high-profile Bitcoin holders from major indexes highlights a growing disconnect between the traditional financial system and the crypto-asset ecosystem. While some companies have successfully integrated Bitcoin into their treasury strategies, index inclusion remains a separate matter, governed by strict financial metrics. This development may prompt other Bitcoin-heavy firms to reconsider their reliance on index-based capital, potentially seeking alternative listing venues or investment vehicles.

Conclusion

MSCI’s decision to drop Strategy and Metaplanet from its global indexes is a routine yet significant event for the affected companies and their shareholders. While the immediate impact may be felt through index fund selling, the long-term consequences will depend on how these companies adapt to their new status as non-index constituents. For now, the move underscores the importance of understanding index methodology and its potential effects on individual securities.

FAQs

Q1: Why were Strategy and Metaplanet removed from MSCI indexes?
They failed to meet MSCI’s market capitalization and liquidity thresholds, which are reassessed quarterly. This is a standard review process, not a reflection of company performance.

Q2: How will this affect investors holding these stocks?
Passive index funds will sell their positions, potentially causing short-term price declines. Direct investors may experience reduced liquidity but are not forced to sell.

Q3: Can these companies be reinstated in future reviews?
Yes, if they meet the eligibility criteria in subsequent quarters, they can be added back. MSCI reviews its indexes on a quarterly basis.