MSCI proposes new index screens for non-operating companies

MSCI is consulting on a proposal to implement new eligibility screens for its global investable indexes, aimed at identifying and potentially excluding companies classified as non-operating. The framework would first test whether a company’s operating assets exceed 50% of its total assets. Companies failing this core test would then be evaluated against five additional financial metrics, including operating expense intensity, cash flow, and capital dependence. A company could be flagged for removal if it fails at least four of these five secondary tests.

While the proposal is not a Bitcoin-specific exclusion, it has drawn attention from Bitcoin treasury firms. A simulation using May 2026 data suggests that companies such as Strategy, Metaplanet, and Yellow Cake PLC could face potential deletion, while others like SharpLink and Lydia Holding might be placed on a watchlist.

This move follows a previous, rejected proposal that targeted companies with digital-asset holdings exceeding 50% of their total assets. Matt Cole, CEO of Strive, previously criticized that specific threshold as “not only unjustified, but overbroad and unworkable.” MSCI is currently seeking feedback on the broader non-operating framework, with results expected by October 16, 2026, and any changes potentially entering the November 2026 index review.