Strategy, Metaplanet lose MSCI index membership in November reshuffle

MSCI is moving to delist bitcoin treasury companies Strategy Strategy, Inc. MSTR+1.06% from its USA Index and Metaplanet (3350.T) from its Japan Small Cap Index at the close of Nov. 30, according to filings published Wednesday.

The removals were mostly expected, especially after MSCI adopted new eligibility rules for so-called non-operating companies last month, which put several crypto treasury firms on the proverbial chopping block. Ethereum treasury company Sharplink was not listed among the deletions in the November small-cap review.

The new rules look at companies' operating assets and five financial measures, replacing temporary restrictions on firms that held at least half their assets in crypto. MSCI previously said that companies on its indexes would face removal if they failed this screening for their two most recent annual filing periods.

Strategy Executive Chairman Michael Saylor and Phong Le previously spoke out against the rule change, calling the proposed treatment of digital asset treasuries "discriminatory." In a September letter, Strategy argued that exclusion would have no meaningful impact on its business but would harm MSCI's reputation as a neutral index provider.

MSCI's review documents did not give company-specific explanations for the removals.

Strategy's common MSTR shares fell 2.6% in after-hours trading to $119.06. Metaplanet shares closed Wednesday down 2.53% at 231 yen in Tokyo, before MSCI announced the removals.