MSCI Reviewing Criteria for Excluding Non-Operating Companies

MSCI is considering the possibility of applying the non-operating company criteria to its global stock indices. If this criterion is implemented, Strategy ($MSTR) could be affected. Strategy has raised over $60 billion for Bitcoin purchases through securities issuance. Since index inclusion generates stock demand, exclusion could reduce the base of mandatory holding investors. On August 3, MSCI announced it would seek market feedback on adding identification criteria for non-operating companies. The proposed criteria consist of two stages and assess whether a company holds substantial operating assets. Companies that do not meet the criteria will be classified as ineligible for index inclusion. The deadline for submitting feedback is September 30, and the results will be announced on October 16. If the changes are finalized, they may be reflected in the regular index changes in November. According to Bloomberg, if this criterion is applied, Strategy, along with Japanese Bitcoin-holding company Metaplanet and uranium investment firm Yellow Cake, could be excluded. Currently, Strategy's stock price has rebounded by 35% after Bitcoin recovered to $80,000, but it has fallen by about 60% over the past year.

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