MSCI to Drop Metaplanet From Japan Small Cap Index on Nov. 30

MSCI will remove Metaplanet from the MSCI Japan Small Cap Index effective at the close of trading on Nov. 30, according to the index provider's November review document released on Nov. 11. The same document removes Strategy, the largest corporate bitcoin holder, from the MSCI USA Index under identical criteria.

The decision follows new listing rules for non-operating companies that MSCI introduced in October. The framework evaluates companies on operating assets and five financial metrics, and it replaces a temporary restriction that applied to firms holding more than 50% of their assets in cryptocurrencies. Companies that fail the review, which draws on their two most recent annual reports, are excluded from MSCI indexes.

How did the market react?

Metaplanet shares closed down 2.53% at 231 yen in Tokyo on Nov. 11 before MSCI published its decision. Strategy shares fell about 2.6% to $119.06 in after-hours trading in New York after the announcement, The Block reported.

The Tokyo-listed Metaplanet, frequently described as Japan's closest analogue to Strategy, now faces reduced passive demand. Removal from the Small Cap Index means funds tracking the benchmark must sell their holdings, tightening liquidity for a stock that has drawn retail attention through its bitcoin accumulation strategy.

What does the new MSCI rule actually do?

The October framework marked a shift in methodology. MSCI moved from a blunt threshold — the prior restriction on companies with more than 50% of holdings in cryptocurrencies — to a structured test based on operating assets and five financial metrics. The review uses each company's two most recent annual reports as evidence, and failure triggers exclusion.

The application is selective rather than categorical. SharpLink, a company that has adopted an Ethereum-based digital asset treasury strategy, did not appear on the latest removal list. That outcome suggests MSCI is evaluating each treasury company against the quantitative criteria rather than excluding all crypto-heavy balance sheets by default.

How has Strategy responded?

Strategy Chairman Michael Saylor and Chief Executive Officer Phong Le have publicly criticized the rule change as discriminatory toward digital asset treasury strategies. In a September letter, the company argued that index exclusion would not materially affect its business but would damage MSCI's standing as a neutral index provider.

The disagreement sets up a broader test of how index providers classify firms whose primary asset is bitcoin rather than an operating business. For Metaplanet, the removal completes a reversal: index membership once anchored its credibility among institutional investors, and the same framework now treats its treasury model as insufficient.

The changes take effect at the close on Nov. 30, giving passive funds tied to the two indexes roughly three weeks to adjust their positions.