MSCI, the firm whose indexes quietly dictate where trillions of dollars in passive investment flows end up, wants to kick out companies whose primary business model is buying and holding Bitcoin.
A new consultation proposal from the index provider would classify firms like Strategy (formerly MicroStrategy), Metaplanet, and uranium holding company Yellow Cake as “non-operating companies,” making them ineligible for inclusion in MSCI’s Global Investable Market Indexes.
How the screening works
MSCI’s proposed methodology uses a two-step process. First, companies are evaluated on “operational asset intensity,” essentially measuring whether a firm’s balance sheet reflects an actual operating business or just a pile of accumulated assets. Companies that trip that first wire then face a gauntlet of five financial ratios designed to assess whether they generate revenue the old-fashioned way.
Fail four out of five, and you’re out.
