MSCI Edges Closer to Barring Strategy and Other Bitcoin Treasury Firms From Its Global Equity Indexes

MSCI is pressing ahead with a proposed methodology that could strike Michael Saylor's Strategy ($MSTR), Japan's Metaplanet and other digital asset treasury companies from its Global Investable Market Indexes. The framework would label businesses whose main activity is accumulating financial assets as "nonoperating," disqualifying them from major equity benchmarks. The fallout could be substantial. JPMorgan reckons passive funds tracking MSCI indexes would be forced to sell $2.8 billion of MSTR shares. Should other index providers follow with similar rules, outflows could climb to $8.8 billion. Strategy's own analysis puts MSCI-tracking funds at roughly 3.1% of its shares outstanding. A final ruling is due around October 16, with implementation possibly starting November 30.