MSCI’s New Index Purge Threatens Bitcoin-Heavy Companies Like MicroStrategy and Metaplanet

Just months after narrowly avoiding delisting, prominent Bitcoin-holding companies MicroStrategy and Metaplanet are once again under scrutiny, facing a renewed threat of exclusion from major global stock indexes compiled by MSCI (Morgan Stanley Capital International).

MSCI recently initiated a new market consultation this month, proposing to remove “non-operating companies” from its influential “Global Investable Market Indexes (GIMI).” Learning from past challenges, MSCI has shifted its approach, moving away from a direct “cryptocurrency holdings” threshold. Instead, it now proposes a comprehensive, two-stage screening process based on five key financial indicators.

The New Screening Methodology: A Two-Stage Assessment

MSCI’s revised methodology aims to identify companies whose primary value creation doesn’t stem from traditional operational activities. The proposed framework is divided into two distinct phases:

Phase 1: Core Screening – Operational Asset Threshold

The initial assessment evaluates whether a company’s “operating assets” constitute more than 50% of its total assets. Companies successfully meeting this criterion will safely retain their index eligibility.

Phase 2: Exclusion Screening – Five Financial Indicators

Companies failing to meet the Phase 1 threshold will proceed to a more rigorous second stage. Here, MSCI will apply five critical financial metrics for an in-depth evaluation:

• Operating Asset Density: The proportion of operating assets relative to total assets.
• Expense Density: The ratio of operating expenses to total assets.
• Cash Flow: A measure of the company’s ability to generate cash from its core operations.
• Fair Value Density: The proportion of fair value adjustments to total assets.
• Capital Dependence: The extent to which the company relies on external financing.

A company that fails four out of these five tests could ultimately lose its eligibility for inclusion in MSCI indexes.

Who’s At Risk? MicroStrategy, Metaplanet, and Yellow Cake Identified

According to MSCI’s preliminary simulations, if this new standard were applied to the “MSCI ACWI IMI Index” based on asset holdings as of May 2026, three companies are projected to be excluded. These include MicroStrategy and Metaplanet, both known for their substantial Bitcoin reserves, as well as Yellow Cake, a publicly traded company that accumulates physical uranium.

While MSCI has refrained from explicitly naming any Bitcoin reserve company in its proposal, the description of “non-operating companies” closely aligns with entities that have significantly accumulated Bitcoin in recent years, primarily relying on capital markets for fundraising to expand their asset base.

MSCI highlights that such companies predominantly generate value through “accumulating and holding non-operating assets.” Their core business operations often yield minimal actual cash flow, and their growth is heavily reliant on external financing rather than organic profits from their primary activities.

A History of Targeting Crypto Holdings

This isn’t MSCI’s first attempt to address companies with significant digital asset holdings. As early as October 2025, MSCI had put forth a controversial proposal to classify companies with digital assets exceeding 50% of their total assets as “fund-like” entities. The intention was to remove these “crypto-holding stocks” during quarterly index adjustments.

That initial proposal had a significant impact, naming 39 companies, triggering considerable volatility in the cryptocurrency market, and drawing widespread industry backlash. Ultimately, MSCI was compelled to postpone the proposal.

Current Consultation and Future Outlook

MSCI is currently engaged in an active consultation process, soliciting feedback from market participants. The consultation period is set to conclude on September 30, with the official decision expected to be announced on October 16. MSCI emphasizes that should the proposal gain final approval, any resulting adjustments to constituent stocks will be implemented during the November 2026 semi-annual index weighting review.