MSCI introduces new index rules, excluding non-operating companies from its Global Investable Market Indexes. MSCI will publish the final list of affected companies on November 11, 2026, as p
MSCI has adopted a new methodology to exclude non-operating companies from its Global Investable Market Indexes, and the ripple effects are already being felt across crypto treasury companies. The changes will take effect after the November 30 close. The final list of affected companies was published on November 11 as part of the November 2026 Index Review.
The announcement follows a consultation MSCI launched on August 3, 2026. The result is a formal framework that adds non-operating companies to the existing list of entities already ineligible for MSCI index inclusion. It previously covered investment funds, business development companies, and passive investment vehicles.
Companies are assessed through a two-stage process. The first is an operating assets screen that determines whether a company has substantial operating business activity. Those that fail move to a second screen built around five financial ratios, covering operating assets, expenses, cash flow, changes in asset valuations, and dependence on external financing.
Failing at least four of the five ratio tests, the company becomes ineligible for index inclusion. For existing constituents, the bar is slightly higher; they must fail the screening in both of their two most recent annual filing periods before removal is confirmed. MSCI may also factor in the most recent interim filing where available.
Based on a simulation run using May 2026 data, MSCI identified Bitcoin treasury companies Strategy (MSTR) and Metaplanet (3350) as potential removals. SharpLink (SBET), an Ethereum treasury company, was flagged for the watchlist. DeFi Development Corp. has also been mentioned in connection with the watchlist.
Strategy and Metaplanet facing potential removal is established. The exact composition of the watchlist, and the status of companies like Upexi, should not be treated as settled until MSCI publishes the official November 11 announcement.
On the other hand, massive funds that track MSCI indexes are required to hold the index constituents. Besides, the removal forces those funds to sell the affected companies’ shares. That selling pressure could be significant given the scale of passive investment flows tied to MSCI benchmarks.
In connection with the new methodology, MSCI will also discontinue the interim measures introduced in October 2025 for companies whose digital asset holdings represented 50% or more of total assets, including freezes on share count increases and restrictions on index additions. All such companies will now be assessed under the new framework.
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