Summary
- MSCI said in its November review that it will remove Metaplanet from the MSCI Japan Small Cap Index as of the close on Nov. 30.
- The decision followed the introduction of new listing criteria for non-operating companies, under which firms that fail a review based on their two most recent annual reports are removed from the indexes.
- After the MSCI removal announcement, Strategy shares fell about 2.6% in after-hours trading, while Metaplanet shares had already closed down 2.53% before the announcement.
Forecast Trend Report by Period
Metaplanet, the Japanese company often dubbed Japan's version of Strategy, will be removed from an MSCI index.
MSCI said in its November review document released on Nov. 11 that it would remove Strategy from the MSCI USA Index and Metaplanet from the MSCI Japan Small Cap Index, effective at the close of trading on Nov. 30, according to The Block.
The change follows MSCI's new criteria for adding non-operating companies, introduced last month. The new rules evaluate companies based on operating assets and five financial metrics, replacing a temporary restriction on companies with more than 50% of their holdings in cryptocurrencies. MSCI had previously said companies that fail the review based on their two most recent annual reports would be excluded from its indexes.
By contrast, SharpLink, which has adopted an Ethereum-based digital asset treasury strategy, was not included on the latest removal list.
Strategy objected to MSCI's decision. Chairman Michael Saylor and Chief Executive Officer Phong Le recently criticized the rule change as discriminatory toward digital asset treasury strategies. In a September letter, the company said exclusion from the index would not materially affect its business, but would hurt MSCI's reputation as a neutral index provider.
Strategy shares fell about 2.6% to $119.06 in after-hours trading following the announcement. Metaplanet shares had already closed down 2.53% at 231 yen in Tokyo before MSCI released its decision.
JOON HYOUNG LEE
