Metaplanet to Be Removed From MSCI Japan Small Cap Index at End of November

Metaplanet, a Japanese company known as the local version of Strategy, will be removed from an MSCI index.

The Block reported on November 11 that MSCI said in its November review document it would remove Strategy from the MSCI USA Index and Metaplanet from the MSCI Japan Small Cap Index, effective at the close on November 30.

The removals follow a new MSCI standard for adding non-operating companies introduced last month. The rule evaluates operating assets and five financial metrics, replacing a temporary restriction on companies with 50% or more 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 a digital asset treasury strategy based on Ethereum, was not included on the latest removal list.

Strategy pushed back against 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 letter sent in September, the company said exclusion from the index would not have a material impact on its business, but would damage MSCI's reputation as a neutral index provider.

After MSCI announced the removals, Strategy shares fell about 2.6% to $119.06 in after-hours trading. Metaplanet shares had already closed down 2.53% at 231 yen in Tokyo before MSCI released its decision.