MSCI's new rules face their first major test as Strategy (MSTR.US) may face removal from benchmark indexes.

Strategy (MSTR.US) faces index provider MSCI's November index review on Wednesday, the first review under the new "non-operating company" rules, which could cost companies with heavy digital asset holdings their benchmark index eligibility. MSCI will announce the changes shortly after 17:00 ET on Wednesday, with the changes effective after the close on November 30. According to MSCI's latest consultation report published in August, a simulation using May 2026 data showed that Strategy would be one of three companies removed from the MSCI ACWI IMI index, alongside Japan-based bitcoin treasury company Metaplanet and uranium investment company Yellow Cake. Ethereum treasury company SharpLink (SBET.US) and others were placed on a public watch list. Rules clash: MSCI advances "non-operating" review The two sides have been at odds for some time. Last October, MSCI froze index weight increases for companies whose digital assets account for 50% or more of total assets. Strategy Executive Chairman Michael Saylor responded at the time: "Index classification does not define us." But MSCI did not directly remove the companies in January this year, only keeping the weight freeze in place and instead reviewing the broader category of "non-operating companies." Strategy subsequently wrote to its equity index committee, calling the new rules "discriminatory, arbitrary and misguided." The company argued that the distinction between operating and non-operating assets is not defined under standard accounting rules, and that this screening, billed as industry-neutral, in practice hits digital asset treasury companies hardest. Strategy demanded that MSCI withdraw the rules or revise them with clear definitions and objective standards, and publish its consultation records and explain how the thresholds were set. Strategy said the change has minimal impact on its own business but could damage MSCI's reputation as a neutral index provider. Rules take effect: buffer period and weight unfreezing MSCI confirmed the rules last month, describing them as "minor modifications" to the August proposal. Under the rule design, companies first undergo an operating asset screening; those that fail are then checked against five financial ratios, and any company judged to fail on four or more metrics will lose index eligibility. However, to limit index turnover, incumbent constituents must fail for two consecutive annual reporting periods before removal, and MSCI will also lift the weight freeze on digital-asset-intensive companies at the November review. Market sentiment: Institutions bullish long-term, retail extremely bearish Still, not all investors are concerned. SkyBridge Capital founder and managing partner Anthony Scaramucci said last month that short-term investors will be disappointed, "but if you can hold this security for four or five years... you will earn incredible returns." On the StockTwits platform, however, retail sentiment toward Strategy fell further from "bearish" to "extremely bearish," while discussion volume remained at low levels. As of press time, Strategy was up 1.9% in premarket trading.