MSCI Will Remove Strategy, Metaplanet and Upexi From Indexes

MSCI will remove Strategy, Metaplanet and Upexi from three equity indexes after the market close Nov. 30, reducing index-linked demand for shares the firms use to finance crypto purchases.

Strategy will leave the MSCI USA Index, Japan-based Metaplanet will exit the MSCI Japan Small Cap Index, and Upexi will leave the MSCI USA Micro Cap Index. The changes follow MSCI’s November review under its framework for identifying non-operating companies.

Strategy disclosed that funds tracking MSCI’s Global Investable Market Index held about 13 million MSTR shares, equal to 3.1% of its basic shares outstanding. At the Nov. 10 closing price of $121.07, the stake was worth about $1.57 billion. The scale of any selling will depend on affected funds’ holdings and the stocks’ liquidity.

The removals do not require the companies to sell crypto assets. But the affected funds will no longer need to maintain index-weighted positions in their shares, and reduced passive demand could make it harder for the firms to preserve premiums that support issuing stock to buy more tokens.

The index changes take effect after the Nov. 30 close.