MicroStrategy's strategy under threat: MSCI intends to exclude "non-operating" companies from global indices
International stock index provider MSCI has launched a consultation process that could radically change the rules for including companies in its global indices. The focus is on a new filter that screens out so-called "non-operating" companies—those whose business is primarily about holding assets rather than conducting operational activities. According to a simulation conducted, if these rules take effect in May 2026, giants such as Strategy (formerly MicroStrategy) and Japan's Metaplanet, as well as Yellow Cake PLC, the owner of physical uranium, would be excluded from the indices.
This is not just a technical adjustment. MSCI indices serve as a benchmark for asset managers worldwide, and any change automatically triggers a rebalancing of portfolios worth trillions of dollars. Exclusion from an index means forced selling of shares by index funds, which will inevitably put pressure on stock prices.
Five tests for "operationality"
The new regulation proposes evaluating companies based on five financial ratios, including the sufficiency of operating assets, cash flow, and dependence on external financing. A company will be excluded if it fails four out of five tests. In the first stage, the share of operating assets on the balance sheet is checked: if it falls below 50%, the company moves to the second round, where its fate is decided.
Both bitcoin companies fit this definition perfectly. Strategy has essentially turned into a closed-end bitcoin fund, issuing shares and bonds solely to grow its crypto reserve. Metaplanet, which has amassed the third-largest corporate BTC stockpile in the world, operates on the same model. Their business model is buying bitcoin, not developing software or running a hotel business.
Transition period and new names on the watchlist
MSCI, aware of the scale of the consequences, is introducing transitional measures. For current index members, the threshold will be softer, and exclusion will only occur after two consecutive failed checks. The public watchlist will also include SharpLink with Ethereum reserves and two other companies that face exclusion after a repeated test failure.
The consultation will run until September 30, results will be announced on October 16, and the actual changes will take effect during the November index review in 2026. This decision will set an important precedent for the entire industry. If MSCI takes such a step, other index providers are likely to follow suit, and then public companies building their strategy around digital assets will face a tough choice: either change their business structure or accept the loss of institutional capital.
My view: This is a logical and long-overdue tightening of the rules. Companies that are essentially passive asset holders should not occupy a place in indices designed for operating businesses. However, for Strategy, this is not a catastrophe but rather a signal to transform. The question is whether the company is ready to sacrifice its "pure" bitcoin strategy to maintain access to index fund capital.