Michael Saylor’s Strategy in Trouble? MSCI’s New Rules Put Index Status at Risk
Michael Saylor-led Strategy may face removing from main international inventory indexes after MSCI authorized new guidelines for firms it considers non-operating. The index supplier introduced this week that it could exclude these firms from its Global Investable Market Indexes.
The new guidelines will take impact at the shut of November 30, 2026, as a part of MSCI’s November index evaluate.
Non-Operating Firms Targeted
The transfer comes after MSCI beforehand thought of excluding firms whose digital asset holdings made up at least 50% of their whole property. Strategy had opposed that proposal as nicely.
In its response to MSCI’s session, the BTC treasury firm argued that the brand new guidelines goal digital asset treasury companies underneath a distinct title. It additionally questioned MSCI’s definition of a non-operating firm, whereas including that the terminology has no foundation in US GAAP, IFRS, or any acknowledged authorized framework. Strategy maintained that its Bitcoin enterprise qualifies as an working section underneath US accounting guidelines, in step with discussions with SEC workers.
The firm additionally asserted that MSCI’s proposal introduces coverage judgments into index building and will undermine the neutrality buyers anticipate from the supplier. Strategy requested MSCI to withdraw the proposal.
The new guidelines goal firms that resemble funding funds and different passive funding automobiles, that are already excluded from its indexes. The course of begins with a test for substantial working property. Companies that fail face a second take a look at based mostly on 5 monetary ratios. These cowl bills, money stream, adjustments in asset values, in addition to reliance on outdoors financing. An organization flagged on at least 4 ratios turns into ineligible.
Exclusion Impact “Overstated”?
MSCI may even use safeguards to restrict frequent index adjustments. Existing members should fail the take a look at in two consecutive annual submitting durations to face removing. A May 2026 take a look at flagged Strategy, Metaplanet, and Yellow Cake for attainable removing.
JPMorgan analysts have estimated that index exclusion may set off outflows of about $2.8 billion from MSTR inventory. But market commentator Adrian Morris believes that this declare is “overstated.” While he doesn’t predict zero worth influence, Morris added,
“Any pressured promoting shall be into buying and selling stream, round rebalances, and many others. This won’t be a market dump occasion. MSTR has the liquidity and turnover to soak up this promoting with little situation IMO. This is a close to time period ripple to cope with, not an existential menace to MSTR.”
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