MSCI Draws the Line: Operating Company or Asset Vehicle

• The new yardstick: What matters is no longer which assets a company holds, but whether it runs an operating business. If operating assets are less than half of total assets, MSCI applies five financial ratios. Failing at least four of the five means ineligibility.
• A buffer only for first-time failures: Existing constituents are assessed retroactively on their latest two annual reports. Failing both means immediate deletion; failing only the latest means a watchlist.
• Who could be affected: In MSCI's simulation (data as of May 2026), Strategy (around USD 23.9 billion free-float market value), Metaplanet and Yellow Cake (a uranium holder) failed both reports, so the buffer does not apply. SharpLink, among others, went on the watchlist.
• Timeline for Strategy: November review results on 11 November, implementation after the close on 30 November; from 1 December the stock would be out of the index. Index funds typically trade at the closing price on the effective date, where selling pressure concentrates. Only the 11 November list is binding.

JPMorgan estimated in 2025 that outflows from Strategy alone could reach around USD 2.8 billion (earlier DATCO proposal). That hits the DAT model at its core: treasury companies fund purchases through new shares and convertibles while the stock trades above its holdings (mNAV above 1). Without passive demand, that relies more on active investors.

The decision changes nothing about the digital assets themselves, but it does change who holds a treasury stock automatically.

This article is for information purposes only and does not constitute investment advice or a solicitation to buy or sell securities.