The Bitcoin Policy Institute is questioning MSCI's proposed rule changes for its indexes, arguing they could unfairly exclude companies like Strategy and Metaplanet. The think tank suggests the broader proposal may stem from an earlier effort to remove digital asset treasury companies.
Index providers like MSCI play a crucial role in passive investing, and changes to their methodologies can significantly impact the holdings and valuations of companies included in their benchmarks, potentially forcing large-scale asset sales by index-tracking funds.
The Bitcoin Policy Institute (BPI) has raised concerns about MSCI's proposed changes to its index methodology, suggesting the benchmark provider's new rules for identifying "non-operating companies" could unfairly target digital asset treasury firms like Strategy and Metaplanet. MSCI had initially planned to exclude such companies from its global indexes in 2025 but withdrew the specific proposal in January following industry pushback. It then broadened its review to encompass "non-operating companies" more generally, returning with a new proposal on August 3 that could still lead to the exclusion of Strategy and Metaplanet.
In a research paper titled "Wall Street’s Invisible Committee," the BPI pointed to metadata indicating that the source presentation for MSCI's consultation was stored in an internal folder related to digital asset treasury companies. This finding, according to the BPI, raises questions about whether the broader language used in the current proposal carries forward MSCI's earlier intent to exclude crypto treasury firms.
MSCI's proposed methodology involves assessing whether a company has substantial operating assets before applying five additional financial tests. Simulations by MSCI indicated that Strategy, Metaplanet, and uranium investment company Yellow Cake would be removed under these new criteria. The potential exclusion of companies like Strategy from MSCI indexes could compel index-tracking funds to sell their shares, with JPMorgan analysts estimating in 2025 that Strategy could face approximately $2.8 billion in outflows if excluded.
MSCI stated that the new test is designed to identify companies whose value is primarily derived from asset accumulation rather than revenue-generating operations. However, the BPI questioned MSCI's reliance on the term "operating assets," noting it is not a standardized accounting category. This, the BPI argues, could grant MSCI significant discretion in classifying assets. The think tank also suggested that the issue could extend beyond crypto to other capital-intensive businesses like mines or satellite networks that hold substantial assets before generating revenue. The BPI has called for MSCI to publish clearer and more reproducible criteria for index inclusion.
MSCI accepted feedback on the proposal until September 30 and anticipates announcing the review's outcomes by October 16. Any resulting changes are slated to be implemented as part of the November 2026 Index Review.
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