Strategy, Metaplanet Face Potential MSCI Index Removal Under Proposed Eligibility Rules

Strategy and Metaplanet, two companies heavily invested in Bitcoin, face possible removal from the MSCI index under newly proposed eligibility rules that would tighten the criteria for index inclusion.

What are the proposed eligibility changes?

The proposed rules, reported by Bloomberg on June 6, 2025, would introduce a stricter definition of what constitutes a company eligible for MSCI index inclusion. Under the new framework, companies whose primary business is holding digital assets, such as Bitcoin, may no longer qualify as operating companies. This directly targets firms like Strategy (formerly MicroStrategy) and Metaplanet, which have pivoted their business models around Bitcoin treasury strategies.

How would this affect Strategy and Metaplanet?

If the rules are adopted, Strategy and Metaplanet would likely be removed from the MSCI World Index and other related indices. This could trigger significant selling pressure from index funds and institutional investors that track these benchmarks. The removal would also reduce the visibility of these stocks among global investors, potentially impacting their liquidity and valuation.

Why is MSCI considering this change?

MSCI, a leading provider of stock market indices, is reportedly responding to the growing number of companies that are accumulating digital assets as a core part of their business. The index provider aims to maintain the integrity and consistency of its indices by ensuring that constituents meet certain operational and financial criteria. By excluding companies that are primarily digital asset holders, MSCI seeks to preserve the traditional definition of an operating company.

What is the timeline and next steps?

The proposed rules are currently under consultation, with MSCI seeking feedback from market participants. A final decision is expected in the coming months. If approved, the changes would likely take effect in a subsequent index review, potentially later in 2025 or early 2026. Until then, Strategy and Metaplanet remain in the indices, but the uncertainty may already be affecting investor sentiment.

Conclusion

The potential removal of Strategy and Metaplanet from MSCI indices highlights the growing tension between traditional financial benchmarks and the rise of crypto-centric corporate strategies. Investors in these stocks should monitor the consultation process closely, as the outcome could have significant implications for their portfolios. The decision will also set a precedent for how other companies with similar business models are treated by index providers.

FAQs

Q1: What is the MSCI index?
The MSCI (Morgan Stanley Capital International) index is a widely used benchmark for global stock markets, providing institutional investors with a tool to track performance and allocate assets.

Q2: Why would Strategy and Metaplanet be removed?
Under proposed rules, companies whose primary business is holding digital assets may no longer meet the definition of an operating company, which is a key criterion for index inclusion.

Q3: What could be the impact of removal?
Removal from MSCI indices could lead to forced selling by index funds, reduced stock liquidity, and a potential negative impact on share prices, as well as diminished visibility among global investors.