MSCI and Strategy: what the new rule changes—and what it doesn’t
On October 15, MSCI adopted a rule making “non-operating companies” ineligible for its global indexes. Strategy, the largest corporate holder of Bitcoin, and Japan’s Metaplanet are among the companies affected. SharpLink and others are on a watchlist. Strategy’s stock fell 4.2% on Friday (Investing.com).
The timeline
→ October 15: rules adopted
→ November 11: list of affected companies published
→ November 30: takes effect at market close
How it works: A company must first pass a test of its operating assets, then a test based on five financial ratios. If it triggers four or more of them, it is deemed ineligible. The rule ends the temporary exemption granted in 2025 to companies whose assets are more than 50% digital (Decrypt).
Why it matters: Index funds that track these indexes must hold the stocks. Exclusion would force them to sell. JPMorgan estimates possible outflows of about 2.8 billion$ for Strategy (Cryptopolitan). Strategy is challenging the rule, which it considers discriminatory.
What it doesn’t mean: Index exclusion is not delisting, and the stock remains tradable.
My analysis: The risk is mainly to the stock and its financing, rather than to the price of Bitcoin itself. Nothing will be decided before November 11. This is a hypothesis, not a forecast.
This is not investment advice.
Do you think excluding a company like Strategy from indexes poses a risk to Bitcoin, or only to the stock? #bitcoin
On October 15, MSCI adopted a rule making “non-operating companies” ineligible for its global indexes. Strategy, the largest corporate holder of Bitcoin, and Japan’s Metaplanet are among the companies affected. SharpLink and others are on a watchlist. Strategy’s stock fell 4.2% on Friday (Investing.com).
The timeline
→ October 15: rules adopted
→ November 11: list of affected companies published
→ November 30: takes effect at market close
How it works: A company must first pass a test of its operating assets, then a test based on five financial ratios. If it triggers four or more of them, it is deemed ineligible. The rule ends the temporary exemption granted in 2025 to companies whose assets are more than 50% digital (Decrypt).
Why it matters: Index funds that track these indexes must hold the stocks. Exclusion would force them to sell. JPMorgan estimates possible outflows of about 2.8 billion$ for Strategy (Cryptopolitan). Strategy is challenging the rule, which it considers discriminatory.
What it doesn’t mean: Index exclusion is not delisting, and the stock remains tradable.
My analysis: The risk is mainly to the stock and its financing, rather than to the price of Bitcoin itself. Nothing will be decided before November 11. This is a hypothesis, not a forecast.
This is not investment advice.
Do you think excluding a company like Strategy from indexes poses a risk to Bitcoin, or only to the stock? #bitcoin