MSCI announced it will remove Strategy from its indexes after determining the company does not qualify as an operating business under newly adopted eligibility criteria. The decision marks a significant shift in how major index providers classify Bitcoin treasury companies.
Strategy holds approximately 850,000 Bitcoin as of early November 2026, representing the majority of the company's assets. Under MSCI's new rules adopted on October 15, 2026, companies classified as non-operating become ineligible for inclusion in the MSCI Global Investable Market Indexes, a family that includes major benchmarks such as MSCI USA and MSCI World.
How the Eligibility Test Works
MSCI's screening process operates in two stages. The first evaluates whether operating assets comprise more than 50% of a company's total assets. The second stage applies five financial-ratio tests examining operational performance, expenses, cash flow, fair-value changes, and capital-raising dependency.
Companies that fail four or more of these five ratios are disqualified. Existing index constituents receive a buffer, with removal occurring only if a company fails the screening in both of its two most recent annual filings.
Market Impact and Timeline
Index inclusion typically brings automatic buyers, while removal triggers automatic selling. Analysts estimate that index-fund selling of Strategy shares could reach $2.8 billion as funds tracking MSCI benchmarks are obligated to divest their holdings.
MSCI is scheduled to publish its final list of affected companies on November 11, 2026, with changes taking effect at the close of November 30, 2026. Other companies also face potential removal, including Japan's Metaplanet, Yellow Cake, and Upexi.
Company Response
Strategy has contested the new guidelines, arguing they discriminate against businesses with substantial digital asset holdings. The company's argument highlights a broader tension between traditional index criteria and the structure of Bitcoin treasury companies that rely on capital raises to expand their holdings.
