MSCI adopts new rules that could exclude Strategy and crypto firms

Global index provider MSCI announced on October 15 that it will implement new rules to define and classify non-operating companies as ineligible for inclusion in its Global Investable Market Indexes. Bitcoin Magazine, Protos, Cointelegraph, and CryptoSlate reported that the decision adopts a methodology proposed in August to exclude businesses that exist mainly to hold assets or investments. [2][3][4][6][7]

The rule changes put corporate cryptocurrency treasury holders at risk of removal from major equity benchmarks such as the MSCI World Index. Cointelegraph and The Block reported that Strategy, Metaplanet, and Upexi were previously identified for deletion under the methodology, while The Block noted SharpLink is also exposed. Strategy previously criticized the proposal, calling it misguided and flawed, according to Bitcoin Magazine. [2][3][4][5]

Following the announcement, Strategy stock dipped 4 percent in after-hours trading, Protos reported. TradingView noted that the shares fell in pre-market trading, while CryptoSlate reported that Strategy stock has been trading nearly 69 percent below its peak. AMBCrypto reported that Strategy executive Michael Saylor downplayed the MSCI move, stating it was not that important to the firm. [3][6][8][10]

MSCI plans to announce its final list of affected companies and exclusions on November 11, according to Cointelegraph and The Block. [4][5]