MSCI approved new eligibility rules on October 15, 2026 to exclude non-operating companies from its global equity benchmarks, putting Michael Saylor's Strategy and Japan's Metaplanet at risk of removal. The rules evaluate operating assets and financial ratios, requiring current constituents to fail tests over two consecutive annual filings before deletion. Strategy faces estimated stock outflows of up to $2.8 billion from passive funds holding 3.1% of its shares. Strategy called the proposal discriminatory, asserting its software business and Bitcoin treasury strategy do not constitute an investment fund.
MSCI index eligibility rule changes
- ▪MSCI will publish the final list of companies affected by its new eligibility rules to exclude non-operating companies on November 11, 2026, with changes taking effect at the close of November 30, 2026
- ▪Existing MSCI index constituents will generally be removed only if they fail the eligibility screens based on operating assets and financial ratios across two consecutive annual filing periods
- ▪MSCI approved new eligibility rules on October 15, 2026 to exclude qualifying non-operating companies from its Global Investable Market Indexes
Strategy potential exclusion
- ▪A May 2026 MSCI simulation identified Strategy as a potential deletion from the MSCI ACWI Investable Market Index under proposed non-operating asset rules
- ▪Strategy shares fell as much as 4.3% in after-hours trading on October 15, 2026 following MSCI's announcement of new index eligibility rules, after closing up 5.62% at $151.29 during regular trading
Metaplanet potential exclusion
- ▪Japan's Metaplanet was identified alongside Strategy and UK uranium investment company Yellow Cake as potential deletions from the MSCI ACWI Investable Market Index in MSCI's May 2026 simulation
- ▪Ethereum treasury firm SharpLink was flagged in MSCI's preliminary review as a company that could enter a watchlist under the new eligibility framework excluding non-operating companies
Financial screening methodology
- ▪MSCI's new eligibility methodology approved October 15, 2026 evaluates companies based on operating assets, expenses, cash flow, changes in asset valuations, and dependence on external financing
- ▪Under MSCI's proposed framework announced in its August 2026 consultation, companies become ineligible for index inclusion if they fail the operating asset test and at least four of five financial screens
Passive fund outflow estimates
- ▪Strategy estimated that MSCI-linked index funds hold roughly 13 million MSTR shares, representing approximately 3.1% of Strategy's basic shares outstanding
- ▪JPMorgan analysts estimated that Strategy (formerly MicroStrategy) could face approximately $2.8 billion in stock outflows from index-tracking funds if removed from MSCI indexes
Strategy opposition to classification
- ▪In a September 2026 letter, Strategy called MSCI's proposal to exclude non-operating companies misguided and discriminatory, arguing that exclusion from MSCI's indexes would harm MSCI's reputation while having no meaningful impact on Strategy's operations
- ▪Strategy Executive Chairman Michael Saylor described Strategy as an operating software business with a Bitcoin treasury strategy, rejecting classification as an investment fund
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