MSCI Targets Crypto Treasury Companies with New Eligibility Rules

MSCI is proposing new eligibility rules that could affect how publicly traded crypto treasury companies are treated by major benchmark providers.

The index provider is considering a two-step test to distinguish operating companies from those primarily creating value through holding financial or non-operating assets.

The first stage examines whether operating assets account for more than 50% of a company's total assets. Companies that fall below this threshold would then face a second set of tests covering five areas, including operating asset intensity and dependence on external financing.

Under the proposed methodology, companies like Strategy, Japan-listed Metaplanet, and Yellow Cake PLC could be removed from MSCI's Global Investable Market Indexes. The framework is particularly relevant for publicly traded companies whose main strategy is raising capital to accumulate assets such as Bitcoin.