MSCI approves rules that could eject Strategy, Metaplanet from equity indexes
In this news:
Key takeaways
- MSCI approved new rules extending index exclusions to companies that resemble investment funds.
- Companies are tested on operating assets and five financial ratios covering expenses and cash flow.
- Strategy and Metaplanet were flagged for possible removal in a recent test run.
Strategy and its bitcoin treasury
Strategy's founder, Michael Saylor, has described the company as an operating business with a software arm, and its bitcoin treasury as a distinct business segment. He has rejected comparisons with investment funds. Strategy, originally MicroStrategy, sells business intelligence software to companies including Coca-Cola and Porsche.
How MSCI decides who is out
MSCI already excludes investment funds and similar vehicles. The new rules extend that to companies that look like them.
First, MSCI checks whether a company has substantial operating assets, meaning assets tied to a real business. If it fails, the company faces a second test based on five financial ratios covering expenses, cash flow, changes in asset values and reliance on outside financing. A company flagged on four or more of the five is ineligible.
To avoid constant churn in the index, MSCI has added buffers. A member is removed only if it fails the screen in each of its two most recent annual filing periods. A company outside the index is blocked from joining if it fails in either of its two most recent periods.
In a first test run using May 2026 data, MSCI flagged three companies for possible removal from its ACWI Investable Market Index. They were Strategy, Metaplanet and Yellow Cake, a U.K. uranium investment company.
Share the article:
Trending News & Crypto World
.png)
Latest Crypto News
Top Trending Cryptocurrencies on The Market
Current Price
$0.9996
Market Cap
$261.9M 0.03%
24h Volume
$1.2M
Supplies
262.0M / ∞
Current Price
$0.00004714
Market Cap
$260.3M 1.48%
24h Volume
$6.3M
Supplies
6.4T / ∞
Current Price
$3.924
Market Cap
$258.3M 3.51%
24h Volume
$12.4M
Supplies
65.7M / 66.0M
Current Price
$0.4842
Market Cap
$258.1M 3.04%
24h Volume
$32.3M
Supplies
1.0B / ∞
Current Price
$25.769
Market Cap
$257.7M -1.58%
24h Volume
$12.6M
Supplies
10.0M / 10.0M
Current Price
$0.9999
Market Cap
$249.9M -0.07%
24h Volume
$131.6M
Supplies
5.0B / ∞
Current Price
$0.000001186
Market Cap
$248.2M 0.88%
24h Volume
$16.4M
Supplies
210.0T / 210.0T
Current Price
$5.808
Market Cap
$245.8M 6.06%
24h Volume
$8.3M
Supplies
100.0M / 100.0M
Current Price
$0.4968
Market Cap
$244.5M 0.48%
24h Volume
$1.7M
Supplies
919.3M / 1.0B
Current Price
$0.002423
Market Cap
$242.3M 13.79%
24h Volume
$6.9M
Supplies
100.0B / 100.0B
Current Price
$0.2066
Market Cap
$241.4M 4.99%
24h Volume
$8.1M
Supplies
1.3B / ∞
Current Price
$2.568
Market Cap
$240.1M 17.30%
24h Volume
$4.7M
Supplies
100.0M / 100.0M