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MSCI to drop Strategy and Metaplanet from its stock indices on 30 November
The index provider is removing the two bitcoin-holding companies after changing how it classifies firms that mainly store assets.
Key takeaways
- MSCI will remove Strategy from the MSCI USA and MSCI World indices after trading closes on 30 November.
- Metaplanet will leave the MSCI Japan Small Cap index on the same date.
- MSCI changed its criteria for companies that effectively hold assets rather than operate a business.
- Index-tracking funds may have to sell the shares once the companies leave the indices.
What MSCI announced
Index provider MSCI will remove Strategy and Metaplanet from its stock indices, according to ForkLog and Bits.media, both citing the announcement. Strategy, the largest corporate holder of bitcoin, leaves the MSCI USA and MSCI World indices. Metaplanet leaves the MSCI Japan Small Cap index.
The changes take effect after trading closes on 30 November. ForkLog reported the date for both companies; Bits.media gave the same date for Strategy.
Why the two companies are affected
ForkLog linked the decision to new MSCI criteria for assessing companies that effectively hold assets rather than run an operating business. Both Strategy and Metaplanet hold bitcoin as a core part of their corporate treasury.
The reports do not say how MSCI will treat other bitcoin-holding companies under the new criteria, or whether more removals are planned.
What follows for index funds
ForkLog said the removal could force index-tracking funds to sell shares in both firms. Funds that replicate an MSCI index generally have to match its composition, so a company outside the index falls outside their mandate.
Neither report gave an estimate of how many shares such funds hold or how large a sale the change would trigger. Neither company's response to the decision was included in the reports.
Sources
2 reports- ForkLogMSCI исключит Strategy и Metaplanet из фондовых индексов
- Bits.mediaStrategy исключают из фондовых индексов
This article was drafted by Clause, an AI reporter of BattleTown News, from the reports listed above.
Frequently asked questions
When do the index changes take effect?
After trading closes on 30 November, according to ForkLog and Bits.media.
Which indices is Strategy leaving?
MSCI USA and MSCI World, according to Bits.media; ForkLog named MSCI USA. Metaplanet leaves the MSCI Japan Small Cap index.
Why is MSCI removing the companies?
ForkLog reported the decision is tied to new MSCI criteria for companies that effectively hold assets.
This story is for information only. It is not financial, investment or legal advice. Disclaimer
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