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Key Takeaways
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MSCI will exclude non-operating companies from its indexes at its November review.
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The changes could remove Strategy, Yellow Cake, and Metaplanet from a major global index.
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Strategy shares fell nearly 10% Friday amid lower bitcoin prices and MSCI's decision.
One bitcoin whale could have fewer spots to surface.
Shares of Strategy (MSTR) slipped nearly 10% on Friday, in part because bitcoin prices were down, but also because index provider MSCI announced that it would start implementing a prior proposal to make non-operating companies "ineligible for inclusion." That would mean publicly traded digital asset treasuries listed on its indexes would be shown the door at its November index review.
The news isn't exactly surprising. The index provider since last fall has been mulling booting publicly traded companies that don't do much but provide investors exposure to a certain asset from their indexes. In January, Strategy's stock got a bit of a boost after MSCI said that it would make a decision after a broader review .
Now the results of that review are in, and it doesn't look good for Strategy and other companies like it.
Though it won't be official until November, MSCI in August listed current index constituents that would be impacted if the proposal were to go into effect. Strategy, a U.K.-listed uranium investment company called Yellow Cake, and Japan-listed bitcoin treasury company Metaplanet, for example, would be deleted from the ACWI Investable Market Index.
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