MSCI Removes Strategy From USA Index Following New Rule

The index provider MSCI announced on Wednesday that it is removing Strategy, the largest corporate bitcoin holder, from the MSCI USA Index as of the close of November 30. The decision follows a new screening process that classifies the company as a non-operating issuer. Many market participants often analyze the MSCI index changes to understand shifts in institutional holdings. The action is part of MSCI's November 2026 Index Review, which was published shortly after 5 p.m. ET. Alongside Strategy, the review removes Japan-based Metaplanet from the MSCI Japan Small Cap Index, Yellow Cake from the MSCI United Kingdom Small Cap Index, Skel Fjárfestingafélag from the MSCI Iceland Frontier Markets Small Cap Index, and Upexi from the USA Micro Cap Index. All five firms had previously appeared on a potential-impact list based on September 30 financial data and October 9 market values. Strategy represents the only large-cap enterprise in the group, accounting for over 90 percent of the combined float-adjusted market value on that October list. At the time, the firm reported holding 850,364 bitcoin acquired at an aggregate cost of $64.16 billion. Strategy shares closed the session at $122.35 before declining in after-hours trading.

The New Operating Asset Methodology

The updated rule does not mention digital assets directly. Instead, the index methodology first evaluates whether a company maintains operating assets equal to at least 50 percent of total assets. Issuers falling short of that threshold must then undergo five financial metrics. Any entity flagged on four or more of those measures becomes ineligible for the MSCI Global Investable Market Indexes. Existing constituents are removed only if they fail the screening criteria across two consecutive annual filing periods, whereas new additions face rejection if they fail either of the last two filings. The new methodology replaced an earlier proposal from late 2025 that specifically targeted firms holding digital assets equal to 50 percent or more of their total assets. MSCI adopted the broader screen on October 15, concluding an extensive market consultation and terminating interim measures such as share-count freezes.

Strategy faces index fund liquidation by November 30 following its removal by MSCI.

Funds tracking MSCI benchmarks must align their portfolios with the index constituents, requiring them to sell the deleted equities before the November close. Previously, JPMorgan analysts estimated potential outflows of approximately $2.8 billion from Strategy under an older proposal, though MSCI itself has published no specific monetary projection. A removal from the index does not delist Strategy shares, and nothing in the regulations obligates the firm to liquidate its bitcoin reserves. In an August statement, Strategy asserted that a deletion would have no significant impact on its core operations, noting that index-tracking funds hold 3.1 percent of its basic shares outstanding and that it reports its bitcoin treasury under U.S. GAAP as an operating segment.

Why it matters

The removal of major corporate holders from prominent global benchmarks changes the passive investment landscape for firms with heavy digital asset treasuries. While the decision does not force companies to sell their underlying assets, it creates direct selling pressure on their publicly traded shares and impacts the equity premium used to fund future treasury acquisitions.