The new MSCI rule

On October 15, MSCI published the results of its consultation on non-operating companies. Companies classified as non-operating are ineligible for inclusion in the MSCI Global Investable Market Indexes. The change is part of the November 2026 Index Review and takes effect as of the close on November 30, 2026.

From the November review, MSCI drops the interim treatment of companies whose digital asset holdings made up 50% or more of total assets and assesses them under the new method instead. MSCI says the screen targets companies whose finances resemble investment vehicles, and that it is not limited to companies holding crypto assets.

How the screen works

The first step is a core screen that checks whether a company has substantial operating assets. Companies that fail it go through an exclusion screen of five financial ratios that apply across industries. They cover operating expenses, operating cash flow, fair value changes and reliance on outside funding, among others. A stock flagged on four or more of the five ratios is ineligible.

Current index members are removed only if they fail the screen in each of the two most recent annual filing periods.

Why Strategy is on the list

Strategy is a bitcoin treasury company, a listed company that holds bitcoin as its main asset. On November 9 it disclosed that it held 850,364 bitcoin as of November 8, bought for about $64.16 billion in total.

MSCI's list of potentially affected companies has 22 names. Five are marked for deletion: Strategy, Metaplanet, SOL treasury company Upexi, uranium investment company Yellow Cake and investment holding company SKEL.

Strategy opposes the new method. It says it still runs a software business and reports its bitcoin business as an operating segment in its financial statements.

When the result comes out

MSCI says the final list will be released on November 11 as part of the November 2026 Index Review announcement. Foresight News expects the result after 22:00 on November 11.

How much passive funds might sell

JPMorgan analysts had estimated that if Strategy were removed, funds tracking MSCI indexes could sell about $2.8 billion of the stock. That estimate was based on the earlier digital asset proposal, not the final rule.

Strategy's own calculation is that passive funds tracking the index hold about 13 million MSTR shares, or 3.1% of its total shares, worth about $1.57 billion at the current price. Strategy says that is below its average daily trading volume and that the impact on its business would be limited.

What it means for bitcoin

Foresight News points out that passive funds selling MSTR would not directly sell any bitcoin on Strategy's balance sheet. An index removal on its own does not imply that Strategy has to sell coins.

The stock-for-bitcoin channel

Strategy raises money for bitcoin by selling stock. Its filing shows $81.9 million in net proceeds from MSTR stock sales went to bitcoin purchases, and it bought 1,036 bitcoin from November 2 to 8. As of November 8, its USD Reserve, which pays preferred dividends and debt interest, stood at $4.77 billion.

Foresight News says that if a removal brings lasting selling pressure and hurts the share price and valuation, each share Strategy sells later would raise less money, and it might have to issue more shares.

Sources