MSCI Axes the "HODL-Stocks": Strategy and Friends Face Index Eviction 👀

Index provider MSCI has adopted new methodology rules that could remove bitcoin treasury firms Strategy ($MSTR) and Metaplanet from its MSCI Global Investable Market Indexes, alongside other corporate holders of digital assets. The change, announced Thursday, formally adopts the "non-operating companies" framework MSCI proposed in August and expands which issuers would be classified under that label.

Under the new rules, MSCI will screen companies using assessments of their operating assets alongside five financial ratios. Issuers that fail at least four of the five tests could be deemed ineligible for inclusion. Existing index constituents generally must fail the screen across two annual reporting periods before being deleted, according to MSCI. The final list of affected companies is scheduled for release on Nov. 11, with the changes taking effect on Nov. 30, 2026.

Sharplink ($SBET), Ton Strategy Company ($TONX), Solana Company ($HSDT) and DeFi Development Corp. ($DFDV) were identified among companies that would be placed on a watchlist for potential removal, while Strategy was previously named as a company that would be deleted under the methodology. Metaplanet and Upexi are also cited as potentially affected. Removal could force funds tracking MSCI indexes to sell the affected shares, with corresponding effects on passive investment demand.

"It removes a company from the default portfolios of tens of millions of people who never chose to remove it," said Conner Brown, executive director of the Bitcoin Policy Institute, who was describing in September the consequences of broad-market index exclusion using Strategy as the example. Analysts at JPMorgan previously estimated that Strategy's removal from MSCI indexes could trigger roughly $2.8 billion in selling pressure, though that estimate referred to MSCI's earlier digital asset proposal rather than the methodology adopted Thursday.

In August, Strategy formally opposed the changes while also playing down the disruption, noting that funds tracking MSCI's Global Investable Market Indexes hold approximately 13 million of its shares, representing 3.1% of its basic shares outstanding and less than one day's trading volume. MSCI said the consultation period had informed its decision to broaden the definition of non-operating companies to include corporate issuers with characteristics similar to investment funds and Business Development Companies. The final roster of excluded names is due on Nov. 11.