MSCI index rule change risks exclusion for crypto treasury firms

crypto treasury firms — Index provider MSCI has finalized new rules that could lead to the exclusion of publicly traded firms holding crypto as a primary treasury asset, including MicroStrategy, Metaplanet, and SharpLink Gaming.

The finalized “non-operating company” rules, which target firms whose primary business is investing in financial assets, are set to take effect in November. A final list of companies deemed non-operating and slated for removal from MSCI’s global indexes is scheduled for publication on November 11.

The change directly impacts firms that have adopted a corporate strategy of holding Bitcoin or other digital assets as a primary treasury reserve. MicroStrategy, the largest corporate Bitcoin holder, is the most prominent company at risk.

Exclusion from major indexes can reduce demand from institutional and passive investment funds that track those benchmarks, potentially affecting the stock liquidity and investor base of the affected crypto-treasury firms.