MSCI Proposes Stricter Rules for Digital Asset Companies
- MSCI identified companies like Strategy and Metaplanet for potential exclusion from its indexes as “non-operating businesses.”
- In a simulation, MSCI found that removing these firms could lead to approximately $2.8 billion in outflows for Strategy alone.
- The new proposal includes five financial tests to assess whether companies have substantial operating assets.
- BPI criticized MSCI’s vague definition of “operating assets,” which lacks standardization under accounting principles.
- Feedback on the proposal was accepted until September 30, with results expected by October 16.
The proposed changes could significantly impact digital asset treasury companies, potentially forcing funds tracking MSCI indexes to divest their holdings. The BPI has called for clearer criteria regarding what constitutes an operating company to ensure transparency in the index classification process.
If implemented, these changes may lead to substantial financial shifts in the market, particularly affecting firms like Strategy and Metaplanet facing potential exclusion from MSCI indexes due to their asset accumulation strategies. (Source)
