MSCI Targets Crypto Treasury Firms with New Financial Test

MSCI has proposed new financial rules that could remove crypto treasury firms from its widely tracked global stock indexes. The framework targets 'non-operating companies' using asset, cash flow, and capital reliance metrics.

The index provider's consultation paper, released in August, moves away from a simple percentage cap on digital-asset holdings. Instead, it introduces a five-part financial screen designed to identify 'Non-Operating Companies' regardless of what asset they hold, whether crypto, gold, or private equity stakes.

At least three firms face deletion, while others like SharpLink are placed on a watchlist. MSCI is proposing a new test that could strip several crypto treasury companies from its indexes.