MSCI confirmed this Wednesday (11) that Strategy, a company linked to Michael Saylor, and Japan's Metaplanet will be removed from its stock indexes following the adoption of new rules for companies considered non-operational. The removals will be implemented after markets close on November 30, effective from December 1.
Both companies gained prominence for using corporate funds to accumulate bitcoin. Strategy will be removed from the MSCI USA, while Metaplanet will leave the MSCI Japan Small Cap. The decision also affects these companies' presence in derived global indexes.
The change may trigger stock sales by funds that track MSCI indicators. These investment vehicles need to adjust their portfolios when a company stops being part of the index used as a reference, reducing a source of demand for the shares.
Strategy had estimated that its removal could trigger US$ 2.8 billion in stock sales. In a broader scenario, JPMorgan calculated possible outflows of up to US$ 8.8 billion if other index providers adopted similar measures, according to Reuters.
The figures represent conditional projections, not sales already made. The actual scale of the adjustments will depend on the positions held by the funds and on the response of the other market participants.
Strategy shares fell approximately 2.5% in trading after the U.S. market close on Wednesday, according to Reuters.
Which criteria led to the removals
The methodology adopted by MSCI does not determine the automatic removal of companies that hold large bitcoin reserves. The new system seeks to identify companies whose financial characteristics are closer to those of investment vehicles than to those of operating businesses.
The assessment begins with an analysis designed to verify whether the company has substantial operating assets. If it does not meet this requirement, it goes through a second stage consisting of five financial indicators, which are not specific to a given sector.
To be considered ineligible, the company must show signs of meeting at least four of the five indicators.
MSCI also established time criteria to avoid frequent changes in index composition. Companies that are already part of the indexes are only removed when they show results incompatible with the criteria in the two most recent annual financial reporting periods. The methodology allows interim statements to be considered, when available.
These conditions replace temporary restrictions previously associated with companies whose digital assets represented at least 50% of their total assets. Therefore, the size of a cryptocurrency reserve, on its own, does not determine removal.
The scope of the methodology shows in the very list of affected companies. In addition to Strategy and Metaplanet, Britain's Yellow Cake, which invests in uranium, is also among the removals. SharpLink, known for its ether reserves, remains on the watch list.
MSCI did not present individualized financial justifications for each excluded company. The decision changes the eligibility of the shares in the covered indexes, but does not prevent the companies from continuing to be traded on exchanges or from keeping bitcoin on their balance sheets.
