MSCI finalizes rule to remove companies with asset-heavy balance sheets from its index starting November 30, targeting Bitcoin treasury strategies.
Regulation & Gov ·
MSCI finalized a rule effective November 30 that will exclude companies classified as "non-operating" from its Global Investable Market Indexes, using a core screening test followed by a five-ratio exclusion measure. The rule targets firms with balance sheets concentrated in a single asset, specifically affecting Bitcoin treasury companies like Strategy and Metaplanet; MSCI will publish the list of affected companies on November 11. Index-tracking funds holding these shares would be required to sell them upon removal, potentially reducing passive investment demand and depressing stock valuations.