MSCI has launched a consultation that could result in Michael Saylor’s Strategy and Japan’s Metaplanet being kicked out of its Global Investable Market Indexes. The move would force passive funds tracking those indexes to dump their holdings, potentially unleashing between $1.8 billion and $2.0 billion in selling pressure on Strategy alone.
The consultation focuses on whether non-operating companies belong in MSCI’s widely tracked equity benchmarks.
Five tests, zero passes
MSCI’s proposed methodology introduces five financial screening criteria. A company needs to pass at least two of them to maintain its spot in the index.
Strategy, based on its FY2025 filings, reportedly fails all five. Metaplanet faces the same predicament. Both companies generate minimal traditional operating revenue relative to the enormous Bitcoin positions they’ve accumulated through convertible debt offerings and equity issuance.
