BPI Challenges MSCI Rule Targeting Strategy, Metaplanet — SkimNews
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- Bitcoin Policy Institute published a paper titled "Wall Street's Invisible Committee" questioning MSCI's methodology, pointing to metadata showing the source presentation behind the consultation was stored in an internal folder for digital asset treasury companies.
- MSCI first proposed excluding digital asset treasury companies from global indexes in 2025, shelved the plan in January after pushback, and returned on Aug. 3 with a broader "non-operating company" proposal that could still remove Strategy, Metaplanet, and Yellow Cake.
- MSCI's proposed methodology assesses whether a company has substantial operating assets before applying five additional financial tests, with the firm's own simulation showing Strategy, Metaplanet, and Yellow Cake would be removed.
- JPMorgan analysts estimated in 2025 that Strategy could face approximately $2.8 billion in outflows if excluded from MSCI indexes, as funds tracking those benchmarks would be forced to sell.
- BPI challenged MSCI's reliance on "operating assets," noting the term is not a standardized balance-sheet category under US GAAP or IFRS, and argued this gives MSCI significant discretion in classifying cash, investments, and strategic holdings.
- BPI argued the implications extend beyond crypto, warning capital-intensive businesses such as mines or satellite networks could also be caught by the broad definition of non-operating businesses.
- MSCI accepted feedback through Sept. 30 and expects to announce results on or before Oct. 16, with any changes proposed to take effect in its November 2026 Index Review.
Why it matters: If MSCI's broader rule is enacted, index funds tracking its benchmarks would be forced to unload shares of excluded companies — JPMorgan estimated roughly $2.8 billion in potential outflows from Strategy alone. Beyond the crypto-treasury companies named in MSCI's simulation, BPI warns the lack of a standardized "operating assets" definition under GAAP or IFRS gives the index provider wide discretion to classify capital-intensive businesses across sectors.
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