MSCI has officially adopted a new methodology to exclude non-operating companies from its Global Investable Market Indexes. The provider will evaluate firms based on their operating assets and five specific financial ratios. Companies that fail at least four of these tests over two consecutive annual reporting periods face removal from the indexes.
The policy change puts several companies at risk of exclusion, including Strategy, Metaplanet, and Upexi. Additionally, firms such as Sharplink, Ton Strategy Company, Solana Company, and DeFi Development Corp. have been placed on a watchlist. MSCI is scheduled to announce the final list of companies to be removed on November 11, with the changes taking effect on November 30, 2026.
The exclusion could force funds tracking MSCI indexes to sell shares, potentially impacting stock prices. While JPMorgan analysts previously estimated that Strategy’s removal could trigger $2.8 billion in selling, the company has downplayed the impact. Strategy noted that funds tracking the index hold approximately 13 million of its shares, which accounts for 3.1% of its basic shares outstanding.
