MicroStrategy Inc. has formally opposed MSCI's proposed screening rules for companies with large non-operating asset holdings, calling the methodology "discriminatory, arbitrary, and misguided" in a Monday letter signed by Executive Chairman Michael Saylor and CEO Phong Le. According to the latest reports, Strategy argues that the proposal unfairly targets digital asset treasury companies and could push companies including Strategy out of major global equity indexes. The company warned that "if adopted, the proposal would have no meaningful impact on Strategy's business, but it would profoundly harm MSCI's reputation as a reliable and neutral index provider." Strategy maintains that MSCI's operating and non-operating asset distinction is not defined under U.S. GAAP, IFRS or existing U.S. securities law, questioning why similar treatment would not apply to other asset-heavy firms like real estate investment trusts and energy infrastructure companies.
MSCI is considering new rules that could remove MicroStrategy Inc. and Metaplanet Inc. from its global equity indexes, potentially adding strain to the financing model behind the companies' Bitcoin holdings. According to reports from Bloomberg, the proposal focuses on whether companies are primarily engaged in accumulating assets rather than operating businesses. The consultation concerns index eligibility and could affect demand for the shares and the companies' access to capital as they seek to continue buying Bitcoin. The current review is broader than MSCI's earlier attempt to exclude digital asset treasury companies, which the index provider abandoned in January after investors raised questions about whether a simple asset threshold could distinguish an operating company from an investment vehicle.
The August consultation uses five financial metrics: operating asset intensity, expense intensity, cash flow, fair value intensity, and capital dependence. As reported by Bloomberg, a company would be considered ineligible if it fails MSCI's core operating-assets screen and four of the five additional tests. Applying the proposed methodology using May 2026 data would have resulted in the removal of Strategy, Japanese Bitcoin treasury company Metaplanet Inc., and uranium investor Yellow Cake Plc. Edward Yoon, an index strategist at Macquarie Capital, said the consultation broadens the discussion to the question of what should qualify as an operating company for inclusion in an equity benchmark. MSCI proposes a two-stage test: companies automatically pass if operating assets exceed 50% of total assets, with those falling below moving to a second test based on operating asset intensity, expenses, operating cash flow, non-operating fair value changes and reliance on financing for asset accumulation.
According to reports from Investing.com, Strategy shares gained 4.42% on Monday to close at $132.94 as the company continued building its Bitcoin position. On the same day, Strategy announced it purchased 4,603 BTC during the previous week at an average price of $80,318 per Bitcoin. The rebound is particularly notable given that the stock shed more than 4% in the prior session after MSCI announced the consultation on rules that could remove Strategy from its global equity indices. The stock has recovered from its 52-week low of $81.81 and continues its recovery from earlier this month, trading at its highest level of the session. Metaplanet shares have also responded positively to the proposal, with the company currently reporting 43,000 BTC on its corporate tracker and its exposure to MSCI dating back to February 2025 when it joined the MSCI Japan Index.
The financial implications of potential removal are significant, with Strategy having a free float adjusted market capitalization of $23.93 billion and Metaplanet at $654 million. Strategy's latest SEC filing showed 840,447 BTC as of August 9 after selling 1,690 BTC for $108.6 million and using proceeds to repurchase STRC preferred stock. The company also raised approximately $653.1 million through MSTR share sales during the week, most of which went into its U.S. dollar reserve. Metaplanet currently reports 43,000 BTC on its corporate tracker. During the earlier crypto treasury debate, JPMorgan estimated that Strategy could face about $2.8 billion in passive selling if MSCI removed it, with a larger figure possible if other index providers followed. However, MSCI has not published an estimate of possible selling tied to the new proposal, so current claims of specific forced outflow figures should be treated cautiously.
The proposal remains consultative, with feedback due by September 30 and results expected on October 16. If the methodology is adopted, qualifying deletions could be incorporated into the December 2026 review. MSCI explicitly warns that the consultation "may or may not" result in the proposed changes, noting that nothing has been removed under the new rule yet. The index provider published its regular August Index Review on August 12, with changes due after the August 31 close, while the separate non-operating company proposal remains scheduled for possible action in November. The current simulation shows which companies would have failed using the stated May dataset, not an irreversible decision on Strategy, Metaplanet or SharpLink. Company filings and financial structures can change, and MSCI's proposal incorporates annual financial data and persistence tests.
