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MSCI adopts index screen for investment-heavy companies

MSCI adopted a new screen for companies whose investment holdings outweigh operating activity. The rules use operating assets and financial ratios to determine index eligibility, with different buffers for existing and prospective members. Strategy and Metaplanet face possible removal. The final affected-company list is scheduled for November 11, ahead of implementation at the November 30 close.

Economics & Markets··Evening
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Operating assets become the first eligibility test

MSCI, the provider of global equity indexes, adopted new eligibility rules for non-operating companies. The change extends its classification of companies whose characteristics resemble investment vehicles.[1], [2]

The screen first asks whether an issuer has substantial operating assets. Companies failing that stage face five financial ratios covering expenses, cash flow, changes in asset values and reliance on external financing. A company flagged on at least four of the five measures is ineligible. The changes follow a proposal made in August.[1]

Existing members have a two-period buffer

An existing index member must fail the screen in both of its two most recent annual filing periods before removal. A prospective member is excluded if it fails in either period. A preliminary exercise using May data identified bitcoin-holding companies Strategy and Metaplanet, alongside UK uranium investment company Yellow Cake, as possible removals. The final affected-company list remains pending.[1]

November review replaces temporary digital-asset measures

MSCI scheduled the final list for November 11 and implementation for the November 30 close. The new rules replace temporary measures announced in October 2025 for companies holding digital assets equal to at least 50 per cent of total assets. Those measures froze increases in index share counts and deferred additions and moves between size segments. Strategy founder Michael Saylor has opposed comparisons with investment funds, describing a software business and a separate bitcoin treasury segment.[1]

References

  1. News sourceCoinDeskMSCI’s new index rules put Strategy and Metaplanet at risk of removal↩1↩2↩3↩4
  2. News sourceMSCIMSCI announces non-operating company eligibility rules↩
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