MSCI, the index provider that underpins a large share of global passive investing, has adopted a new inclusion rule aimed at excluding “non-operating companies” from its MSCI Global Investable Market Indexes. The change—finalized after a methodology proposal in August—could remove several crypto treasury firms, including Strategy, from widely followed indexes, potentially forcing funds that track those benchmarks to sell.
MSCI said the methodology will be used to determine eligibility based on operating activity and a set of financial tests. The decision matters because index removals typically lead to mechanical selling by index-tracking funds, which can translate into short-term pressure on affected stocks—regardless of day-to-day trading fundamentals.
Key takeaways
- MSCI adopted a methodology that can exclude “non-operating companies” from its MSCI Global Investable Market Indexes.
- Strategy has already been identified by MSCI as a likely removal candidate under the “non-operating companies” framework.
- Other crypto treasury firms are expected to be placed on a watchlist, with Sharplink, Ton Strategy Company, Solana Company, and DeFi Development Corp among those mentioned.
- MSCI will publish the final removal list on Nov. 11, with changes taking effect Nov. 30, 2026.
- The removal process is designed to rely on operating assets and five financial ratios, with companies needing to fail at least four tests to be deemed ineligible.
MSCI’s “non-operating companies” framework
In a statement issued Thursday, MSCI said it will adopt a methodology first proposed in August that targets companies considered “non-operating” for inclusion in its global benchmarks. The company described a screening approach that evaluates firms primarily through their operating assets and five financial ratios. Under the framework, companies failing at least four of the five tests could be deemed ineligible.
MSCI also provided timing detail on how existing constituents will be handled. Companies already in the index generally must fail the screening process over two annual reporting periods before they can be removed, creating a built-in review window rather than an immediate one-off adjustment.
Which crypto treasury firms are in focus
MSCI previously flagged Strategy as one of the companies it expected to be deleted under the non-operating companies methodology. The Thursday update reiterated the risk for Strategy and placed additional crypto treasury-related firms on a watchlist for possible removal.
Among the names mentioned as candidates for closer scrutiny were Sharplink, Inc, Ton Strategy Company, Solana Company, and DeFi Development Corp. These additions suggest MSCI’s screening criteria are not isolated to a single issuer, but rather could apply across a broader set of crypto treasury models—particularly where the company’s business characteristics may be interpreted as not meeting MSCI’s definition of “operating” activity.
Why index removals can move stocks
MSCI’s rule change is more than a classification exercise. Index inclusion determines what assets passive and systematic funds hold, including investors who do not actively select individual securities. When a constituent is removed, funds tracking the benchmark typically need to rebalance, which can create sell pressure even if investors otherwise disagree with the underlying eligibility decision.
MSCI’s shift could therefore reduce passive demand for the affected shares. As the potential downstream effect, MSCI noted that the company would follow a structured process culminating in a final list announcement. That planned schedule still gives investors time to assess exposure, liquidity, and the likelihood of inclusion versus removal.
The potential impact has been discussed in the past in relation to MSCI’s earlier digital asset proposal. JPMorgan analysts previously estimated that Strategy’s exclusion from MSCI indexes could trigger roughly $2.8 billion in selling, though that figure was tied to an earlier MSCI proposal rather than the specific rules adopted Thursday.
Strategy, for its part, had previously pushed back on the change while offering an argument intended to downplay disruption. In August, the company said funds tracking MSCI’s Global Investable Market Indexes hold approximately 13 million shares of Strategy, equating to about 3.1% of its basic shares outstanding. Strategy also said those holdings amounted to less than one day’s trading volume at the time, emphasizing the possibility that forced trading would be limited.
At the same time, critics of broad index exclusions have stressed that even if index-tracking flows are manageable on a relative basis, they still represent involuntary portfolio changes. Conner Brown, executive director of the Bitcoin Policy Institute, said in September that an index exclusion “removes a company from the default portfolios of tens of millions of people who never chose to remove it,” using Strategy as an example of the broader consequence of benchmark-driven decisions.
Timeline: final list and effective date
MSCI stated that the final list of companies to be removed under the new methodology will be released on Nov. 11. The changes are scheduled to take effect on Nov. 30, 2026, according to the index provider.
This staggered approach means markets will likely focus first on whether the watchlisted crypto treasury companies stay on the list as MSCI refines its eligibility conclusions, and then on how closely the screening tests map to the business models of firms that hold crypto assets as a treasury strategy.
Investors and traders should also pay attention to how MSCI evaluates “operating assets” and the five financial ratios that determine eligibility, because those criteria will shape which companies are seen as qualifying for continued inclusion. Even for companies that are not immediately named for removal, being placed on a watchlist can prompt investor reassessment well before any mandatory index rebalancing occurs.
With the final removal list due in November and the effective date more than a year later, the next phase for market participants is monitoring MSCI’s screening results and determining whether more crypto treasury issuers could end up being classified as non-operating. The core uncertainty is how consistently MSCI’s tests will apply across different corporate structures—and how investors will price the risk of benchmark-driven forced selling as the deadline approaches.
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