MSCI Removes Digital Asset Treasury Firms From Global Indexes
MSCI will remove Strategy, Metaplanet, and Yellow Cake from its global indexes on December 1 for resembling investment funds rather than operating businesses.
Index operator MSCI will remove Strategy, Tokyo-listed Metaplanet, and UK-based Yellow Cake from its global indexes on December 1. The decision follows a review of non-operating companies that the operator determined more closely resemble investment funds than operating businesses. The move specifically targets digital asset treasury companies whose holdings represent 50% or more of their total assets.
This exclusion from the MSCI USA and MSCI World indexes is expected to curb passive investment flows, as funds tracking these benchmarks will no longer be required to hold the shares. Strategy previously warned that such an exclusion would result in $2.8 billion of its stock being liquidated.
J.P. Morgan has estimated that if other index providers follow the lead of MSCI, total outflows from Strategy stock could reach $8.8 billion.
