Regulation· ★★★★· bearish·

MSCI finalizes criteria for non-operating companies; affected tickers due Nov 11

  • —The rules target companies whose operating assets make up less than 50% of total assets
  • —Five financial ratios are applied; failing four or more triggers ineligibility
  • —Existing index members are removed only if they fail the test in two consecutive annual reviews
  • —Strategy opposes the rules, arguing its bitcoin business is an operating segment under GAAP
Why it matters: Removal from MSCI indexes could cut index-fund demand for Strategy shares and indirectly weaken its bitcoin purchases.
#BTC#MSTR
Source: TokenPost
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