MSCI has introduced new criteria for index inclusion, targeting companies that function primarily as investment vehicles rather than operating businesses. The firm identified MicroStrategy and the Japanese company Metaplanet as potential candidates for removal from its global stock indexes. Other companies, such as the UK-based Yellow Cake, were also flagged, while SharpLink may be added to a watchlist.
The new MSCI test evaluates operating assets, business cash flow, and reliance on external financing. MicroStrategy, which continues to sell software, disputes this classification, calling the proposal misguided. If removed, ETFs tracking MSCI indexes would be required to sell MSTR shares during rebalancing, potentially creating selling pressure on the stock.
MicroStrategy estimates that funds linked to MSCI hold approximately 13 million shares, representing about 3.1% of its basic shares outstanding. The company argues that this volume is less than a typical day of trading and could be absorbed by other market participants. Exclusion from the indexes would not result in a Nasdaq delisting or force the company to sell its Bitcoin holdings.
On Thursday, MSTR shares rose 5.62%, closing at $151.29, though this movement occurred prior to the MSCI announcement. MSCI plans to publish the list of affected companies on November 11. The new rules will take effect after November 30, with existing index constituents protected by a two-annual-filing test before any potential removal.
