Strategy, Metaplanet Push Back on MSCI's Proposed "Nonoperating" Company Screen

Strategy said it has sent a joint letter to MSCI, signed by CEO Phong Le, urging the index provider to withdraw a proposed screening rule aimed at so-called "nonoperating companies." The company warned that adoption of the rule could lead to Strategy being removed from the MSCI Global Investable Markets Index universe, with Metaplanet also potentially facing exclusion. MSCI opened a public consultation in August on whether to introduce additional screens for issuers whose operating assets represent less than 50% of total assets. The proposal outlines five tests: the share of operating assets, expense structure, cash-flow performance, fair-value volatility, and reliance on external financing. Companies that fail four of the five tests would be deemed ineligible; current constituents would be deleted only after failing in two consecutive annual reviews. The proposal currently references six companies, including Strategy (about $23.93 billion adjusted market cap), Yellow Cake (about $1.81 billion) and Metaplanet (about $654 million). Three more firms, including Ethereum treasury company SharpLink, would be placed on a public watchlist. Company disclosures cited by CoinMarketCap said Michael Saylor and Le called the proposal "discriminatory, arbitrary, and poorly conceived," arguing it effectively targets digital-asset treasury companies. They drew parallels to an MSCI idea it declined to adopt in January that would have restricted index eligibility for firms with crypto asset holdings exceeding 50%. Strategy said its analysis shows the companies most exposed are crypto treasury businesses. Of the six firms referenced, it identified only Strategy, Metaplanet and SharpLink as crypto-treasury-related entities, and said Strategy alone represents roughly 87% of the combined adjusted free-float market capitalization of those six. Saylor and Le added that even if Strategy were removed, the direct impact on Strategy's business would be limited, while MSCI could face reputational damage as a neutral index provider. Strategy also argued it should not trip key warning indicators under the draft framework. In its second-quarter Form 10-Q filed on Aug. 3, the company said it reported its Bitcoin treasury business as a separate operating segment and treated changes in Bitcoin's fair value as operating expenses. On that basis, Strategy said it should not trigger the "fees" and "fair value volatility" metrics that could lead to exclusion. The company additionally asked MSCI to preserve documents related to the development of the screening test. MSCI's comment period is scheduled to end Sept. 30, with an outcome expected Oct. 16. If approved, the rule could take effect as soon as the November index review. Separately, JPMorgan analysts estimated in November 2025 that removing Strategy from MSCI indexes could prompt about $2.8 billion in passive outflows; if other index providers followed, total outflows could reach $11.6 billion.