Michael Saylor-led Strategy could face removal from major global stock indexes after MSCI approved new rules for companies it considers non-operating. The index provider announced this week that it would exclude these companies from its Global Investable Market Indexes.
The new rules will take effect at the close of November 30, 2026, as part of MSCI’s November index review.
Non-Operating Firms Targeted
The move comes after MSCI previously considered excluding companies whose digital asset holdings made up at least 50% of their total assets. Strategy had opposed that proposal as well.
In its response to MSCI’s consultation, the BTC treasury company argued that the new rules target digital asset treasury firms under a different name. It also questioned MSCI’s definition of a non-operating company, while adding that the terminology has no basis in US GAAP, IFRS, or any recognized legal framework. Strategy maintained that its Bitcoin business qualifies as an operating segment under US accounting rules, consistent with discussions with SEC staff.
The company also asserted that MSCI’s proposal introduces policy judgments into index construction and could undermine the neutrality investors expect from the provider. Strategy asked MSCI to withdraw the proposal.
The new rules target companies that resemble investment funds and other passive investment vehicles, which are already excluded from its indexes. The process starts with a check for substantial operating assets. Companies that fail face a second test based on five financial ratios. These cover expenses, cash flow, changes in asset values, as well as reliance on outside financing. A company flagged on at least four ratios becomes ineligible.
Exclusion Impact “Overstated”?
MSCI will also use safeguards to limit frequent index changes. Existing members must fail the test in two consecutive annual filing periods to face removal. A May 2026 test flagged Strategy, Metaplanet, and Yellow Cake for possible removal.
JPMorgan analysts have estimated that index exclusion could trigger outflows of about $2.8 billion from MSTR stock. But market commentator Adrian Morris believes that this claim is “overstated.” While he doesn’t predict zero price impact, Morris added,
“Any forced selling will be into trading flow, around rebalances, etc. This will not be a market dump event. MSTR has the liquidity and turnover to absorb this selling with little issue IMO. This is a near term ripple to deal with, not an existential threat to MSTR.”
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