Key facts
- MSCI is consulting on new rules to define "non-operating companies" for index eligibility.
- The proposed rules could exclude companies like Strategy and Japan's Metaplanet from global benchmarks.
- Strategy argues that MSCI's criteria lack grounding in U.S. GAAP or IFRS and conflict with its SEC-aligned classification of Bitcoin activities as an operating segment.
- The new methodology includes a core screen for operating assets and an exclusion screen based on five financial ratios.
- Strategy holds over 845,050 bitcoin, making it the largest corporate holder.
- Passive funds tracking MSCI GIMI indexes hold approximately 13 million of Strategy's shares, less than one average trading day's volume.
MSCI, a leading global index provider, is facing scrutiny over its evolving role in capital markets, shifting from a descriptive benchmark creator to a de facto market regulator. The sheer volume of passive capital tracking its indexes means MSCI's decisions on eligibility criteria now significantly influence companies' access to institutional investment, borrowing costs, and liquidity.
This transformation is particularly contentious in MSCI's approach to companies holding significant digital assets on their balance sheets. After a failed attempt in late 2025 to directly target "Digital Asset Treasury Companies," MSCI launched a new consultation on August 3, 2026. This broader proposal aims to redefine and restrict the index eligibility of "non-operating companies" through a quantitative framework.
The new methodology involves a two-step process. First, a "Core Screen" determines if an issuer's operating assets exceed 50 percent of its total assets. If a company fails this, it undergoes an "Exclusion Screen" using five non-industry-specific financial ratios. Failing at least four of these metrics classifies a company as non-operating and ineligible for index inclusion.
While existing index constituents have some protections, the intent appears to be to exclude major corporate Bitcoin adopters. Simulation data suggests that companies like Strategy and Japan's Metaplanet would be flagged, along with UK-based Yellow Cake plc, while others like SharpLink and Center Laboratories would be placed on a watchlist.
Strategy, which has accumulated over 845,050 bitcoin, is a primary target. The company argues that MSCI's classification has no basis in established accounting principles like U.S. GAAP or IFRS. Strategy asserts that its Bitcoin treasury operations are an official operating segment, aligned with the U.S. Securities and Exchange Commission, and that MSCI is substituting its own policy judgments for regulatory standards.