MSCI confirms the removal of Strategy, Metaplanet, and Upexi from its global equity indexes effective Nov. 30, potentially triggering passive fund outflows.
MSCI confirmed in its November index review that Strategy is deleted from its global equity indexes effective after the Nov. 30 close. Removal cuts passive index demand, and JPMorgan previously estimated roughly $2.8 billion in selling could follow. Strategy counters that MSCI-linked funds hold about 13 million shares, or 3.1% of basic shares outstanding and less than one day of trading volume, which argues the selling may be absorbed quickly.
Metaplanet, a Bitcoin treasury company in Japan, is marked for deletion from MSCI's global equity indexes in the same final November review list as Strategy, effective after the Nov. 30 close. Passive funds tracking the benchmarks may sell its shares, removing a source of demand. The smaller size of the deletion list beyond Strategy may limit the effect on the share price.
Upexi, described as a crypto treasury company, is marked for deletion from MSCI's global equity indexes effective after the Nov. 30 close. Index-tracking funds could sell the shares, reducing passive demand. The article provides no selling estimate specific to Upexi, so the magnitude is less certain than for Strategy.
The Ether treasury firm SharpLink is placed on MSCI's watchlist in the same November review, signaling it may face deletion in the future. It is not deleted this round, so there is no forced selling yet, but the watchlist raises the risk of future passive demand loss.
Strategy is the largest Bitcoin treasury company, and its forced index deletion could trigger roughly $2.8 billion in selling of its shares, pressuring its ability to hold or buy bitcoin. Excluding digital asset treasury companies from major indexes also removes a channel that had linked bitcoin exposure to equity flows. The company's own argument that MSCI-linked funds hold only 3.1% of shares outstanding limits the direct effect.
MSCI has finalized the removal of Strategy, Metaplanet, and Upexi from its global equity indexes, effective after the market close on Nov. 30. The decision follows a debate regarding the classification of crypto treasury firms as operating businesses. While JPMorgan previously estimated that Strategy's exclusion could trigger $2.8 billion in selling, the company argues that MSCI-linked funds hold only 3.1% of its shares.
MSCI has debated whether crypto treasury companies qualify as operating businesses and listed Strategy's shares as 'Deleted' in its final November index review list.
The changes take effect after market close on Nov. 30, under the timetable MSCI announced in October.
Passive funds tracking MSCI benchmarks may sell the shares once the deletion takes effect after the Nov. 30 close, reducing passive investment demand.
The deletion takes effect after market close on Nov. 30, under MSCI's November index review.
No, SharpLink is on MSCI's watchlist rather than the deletion list, meaning no index removal takes effect this round.
Only indirectly: Strategy is a Bitcoin treasury company, so reduced passive demand for its shares could ease a source of bitcoin-linked equity flows, but the article reports no direct selling of bitcoin.