MSCI finalizes rules that could push Strategy out of major indexes
Macro & Markets ·
The index provider has completed new criteria classifying crypto treasury firms as non-operating companies, a status that puts Strategy's index membership at risk.
MSCI has finalized index rules following consultations about companies whose primary business involves holding digital assets rather than operating traditional businesses, according to The Block. Strategy, the company led by Michael Saylor that holds large bitcoin reserves on its balance sheet, is among the firms now classified under the non-operating designation, a label that can trigger removal from MSCI's benchmark indexes.
The classification matters because inclusion in MSCI indexes drives passive investment flows from funds that track those benchmarks. A company dropped from an index can see institutional holders required to sell, since many index funds and ETFs mechanically mirror index composition rather than making discretionary investment choices.
Saylor pushed back against MSCI earlier this year, calling the provider's approach to digital asset treasury companies "discriminatory," according to The Block. His objection came amid MSCI's consultation process, which has now concluded with rules that categorize firms like Strategy by their non-operating status rather than by sector or market capitalization alone.
The move is corroborated across multiple reports describing MSCI as removing MicroStrategy from its indexes specifically on the basis of this non-operating classification, following the consultation period. Coverage of the development spans four distinct sources, indicating the finalized rules are being treated as a significant shift in how index providers evaluate companies that function primarily as vehicles for holding digital assets rather than running conventional operating businesses.
What remains unclear is the exact timeline for implementation, which other crypto treasury firms beyond Strategy will be affected, and the scale of any resulting passive-fund selling. Also unresolved is whether Strategy or similar companies will pursue further appeals or restructuring to retain index eligibility, or whether other index providers will adopt comparable non-operating classifications for digital asset treasury firms.