MicroStrategy and Metaplanet face potential exclusion from MSCI indexes as the index provider evaluates a new 'non-operating company' rule targeting firms with significant crypto holdings.
MSCI's proposed rule could remove Strategy from its indexes, potentially reducing demand from index funds.
Metaplanet could also be removed from MSCI indexes under the same non-operating company rule, affecting passive inflows.
MSCI is the index provider facing criticism over its proposed rule, but the direct financial impact on MSCI is unclear.
The debate over MSCI's rule indirectly affects Bitcoin treasury companies, but Bitcoin itself is not directly targeted.
A new Bitcoin Policy Institute report warns that MSCI’s proposed 'non-operating company' classification could trigger the removal of MicroStrategy and Metaplanet from its global indexes. The potential reclassification stems from a broader review of corporate crypto treasury holdings, raising concerns over future passive capital inflows for these firms.
It is a proposed classification criteria that could lead to the removal of companies from MSCI indexes if they are deemed to hold the majority of their assets in non-operating capacities, such as Bitcoin treasuries.
If classified as non-operating companies, these firms could be removed from MSCI indexes, which would force index-tracking funds to sell their shares, potentially impacting liquidity and stock performance.