MSCI approves rules that could eject Strategy, Metaplanet from equity indexes
MSCI has announced new rules making companies that primarily hold investments, rather than running a real business, ineligible for its Global Investable Market Indexes. This decision, effective November 30, could lead to significant outflows from companies like Strategy and Metaplanet, which are major Bitcoin holders. JPMorgan analysts estimate outflows of about $2.8 billion from Strategy stock.
Why it matters
Exclusion from major indexes forces tracking funds to sell shares, potentially causing billions in outflows for affected companies and making it harder for them to fund their Bitcoin acquisition strategies. This highlights a growing tension between traditional index construction and the rise of crypto-holding firms.
Under the rules announced Thursday , companies that mostly hold investments rather than running a real business will be deemed ineligible for MSCI's Global Investable Market Indexes. The final list of affected firms is due Nov. 11 and the change takes effect at the close of Nov. 30.
The decision is important because it affects demand for the companies’ shares. Many investors gain exposure to stock markets by placing their money in funds that track an index. When a company is added to the index, those funds must buy its stock. When it is removed, they must sell, whatever the fund managers think of the company.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in