Strategy, Metaplanet face MSCI exclusion Risk: What it means for crypto

00:00 Speaker A

strategy Meta Planet could face MSCI index removal under new proposal. It's having deja vu all over again. This is something that we discussed just months ago, but MSCI is changing the qualifications of the test for what can be included in the index.

00:13 Speaker A

A new methodology that would exclude non-operating companies from its global investible market indexes.

00:20 Speaker A

So, this is not explicitly aimed at crypto. It targets companies whose value comes from primarily from accumulating assets rather than operating a conventional business.

00:32 Speaker A

It comes to to to three companies, right? It's uh strategy, Meta Planet and a uranium holder Yellow Cake.

00:40 Speaker A

What a name. You guys definitely remember the uh Yellow Cake, Uranium, George Bush uh days of memes before memes.

00:47 Speaker A

But yeah, so there's other companies Ethereum Treasury companies that could come up uh in this as well, sharp named in the future on a watch list, but they're going to have to basically pass uh certain certain tests and criteria which they probably won't or they're going to be removed from the MSCI.

01:00 Speaker A

So, why does it actually matter? So, the index exclusion could force passive funds that track MSCI benchmarks to sell effective shares.