Index provider MSCI has officially removed Strategy (MSTR), Metaplanet, Yellow Cake, Skel and Upexi from its USA and global indexes, a move that will require passive index funds to divest their holdings by the November 30 close. The expulsions follow the formal introduction of a new screening criterion that classifies certain firms as non-operating companies, fundamentally altering their eligibility for inclusion in widely tracked equity benchmarks and forcing passive managers to rebalance their portfolios to reflect the revised constituents.
The November index review, published at 5 p.m. ET, marked the first implementation of MSCI’s new non-operating company screen, according to a report by Bitcoin Magazine. The preliminary roster of potentially affected securities was constructed using company data and filings current as of Sept. 30, establishing the factual basis for the removals several weeks in advance of the final determination and giving market participants advance notice of the pending changes.
The confirmed delisting extends beyond Strategy to include Japan-based Metaplanet, uranium-focused investment vehicle Yellow Cake, and firms Skel and Upexi, as detailed by Bitcoin Magazine. Because inclusion in MSCI indexes directly determines the investable universe for numerous passive exchange-traded funds and mutual funds, the exclusion compels benchmark-tracking portfolios to sell their positions in these companies before the Nov. 30 effective date, which will occur after the market close on that day.
Strategy had actively contested the proposed rule change ahead of the review. According to The Block, the company argued that its exclusion would harm MSCI’s reputation as a neutral provider. MSCI proceeded with the delisting despite that opposition, applying the new screen uniformly across its USA and global benchmark families.
The non-operating company designation reflects an updated classification framework under which MSCI evaluates whether a firm’s primary activities align with conventional commercial or industrial operations. Companies whose business models center on holdings of digital assets, investment vehicles, or other non-traditional balance-sheet strategies rather than mainstream operating revenue may fall outside the revised eligibility parameters. Once classified under this screen, a firm is no longer eligible for inclusion in the targeted MSCI benchmarks, triggering mandatory divestiture from any index-tracking portfolio that references those benchmarks for its construction rules and sector weightings.
With the deadline set for the close of trading on Nov. 30, index funds now face a defined window to complete their rebalancing and dispose of shares in the five removed companies. The decision establishes a clear precedent for how MSCI will treat similarly structured firms in future quarterly and semi-annual reviews, tying index membership directly to operating-company status as determined by the provider’s new screening methodology.