MSCI is considering a rule change that could exclude companies focused mainly on accumulating assets rather than running operating businesses from its global equity indexes. Based on data from May this year, the proposed methodology would remove Strategy, Japan’s bitcoin treasury company Metaplanet, and uranium investment company Yellow Cake. The move matters most for Strategy, which has funded more than $60 billion in bitcoin purchases through securities issuance. If the company were dropped from MSCI indexes, the pool of investors required to hold its shares could shrink, weakening demand for the stock. That, in turn, could make it harder for Strategy to keep raising capital for additional bitcoin purchases. The report was cited by Odaily.
MSCI is considering a new rule that could remove companies whose main activity is asset accumulation rather than operating businesses from its global stock indexes, a change that could create fresh funding pressure for Strategy.
Using data from May this year, the methodology would have excluded Strategy, Japan-based bitcoin treasury company Metaplanet, and uranium investment company Yellow Cake.
Strategy has so far funded more than $60 billion in bitcoin purchases through securities issuance. A potential index removal could narrow the group of investors that must hold its shares, weaken demand for the stock, and make it harder for the company to keep raising money for additional bitcoin purchases.
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