TheBlock
MSCI will remove Bitcoin treasury companies Strategy and Metaplanet from its USA Index and Japan Small Cap Index, respectively, at the close of Nov. 30. Strategy shares fell 2.6% to $119.06 in after-hours trading, while Metaplanet closed down 2.53% at 231 yen in Tokyo before the announcement.
Why it matters
The removals follow MSCI's adoption of new eligibility rules for non-operating companies. The screening examines operating assets and five financial measures, replacing temporary restrictions on companies that held at least half their assets in crypto.
MSCI previously said indexed companies would be removed if they failed the screening for their two most recent annual filing periods. Its review documents did not provide company-specific reasons for the removals.
Strategy Executive Chairman Michael Saylor and Phong Le had criticized the proposed treatment of digital asset treasuries as discriminatory. In a September letter, Strategy argued that exclusion would not meaningfully affect its business but would damage MSCI's reputation as a neutral index provider.
Market impact
The index changes put two prominent Bitcoin treasury companies outside their respective MSCI benchmarks. The removals were largely expected after the eligibility changes, particularly for crypto treasury firms.
Ethereum treasury company Sharplink was not among the deletions listed in the November small-cap review. Metaplanet's closing share price preceded MSCI's announcement, unlike Strategy's after-hours move.
Frequently asked questions
-
When do the MSCI index removals take effect?
Strategy and Metaplanet will be removed from their respective MSCI indexes at the close of Nov. 30.
-
What changed in MSCI's eligibility rules?
MSCI introduced a screening process based on operating assets and five financial measures. It replaces temporary restrictions on firms that held at least half their assets in crypto.
-
Did MSCI give specific reasons for removing either company?
MSCI's review documents did not provide company-specific explanations for the removals.
-
How did Strategy and Metaplanet shares trade?
Strategy shares fell 2.6% to $119.06 after hours. Metaplanet closed down 2.53% at 231 yen in Tokyo before the removals were announced.
-
Was Ethereum treasury company Sharplink listed for removal?
Sharplink was not listed among the deletions in MSCI's November small-cap review.
WuBlockchain
CryptoSlate
CoinTelegraph
WatcherGuru
Glassnode
CoinDesk
Crypto News
Lookonchain