MicroStrategy issued a statement opposing the proposal from Morgan Stanley Capital International (MSCI) to remove companies holding significant amounts of Bitcoin from the main stock index, stating that the rules misinterpret them as an investment fund.
This response comes after JPMorgan warned that the measures could lead to the forced sale of assets worth billions of USD, which Strategy has become central to the debate on how to manage risks related to Bitcoin in the public stock market.
Strategy protects its operational model.
Strategy (formerly MicroStrategy) issued a statement on Wednesday, arguing that MSCI's proposal misrepresents how a company holding a large amount of Bitcoin operates.
In a 12-page letter signed by Executive Chairman Michael Saylor and company president Phong Le, the company stated that it is an operating business that uses reserves in the form of Bitcoin to issue bonds and raise funds.
The company argues that this strategy is entirely different from passive investment tools designed to track a single asset.
We urge MSCI to reject this proposal as it is based on widespread misconceptions about DATs and would lead to overly complex requirements that are impractical, stifling innovation and damaging the reputation of the MSCI index while also conflicting with national policy.
Strategy also stated that the requirement to hold digital assets exceeding 50% is discriminatory, as the companies see this rule as specifically targeting them, while similarly concentrated business sectors, such as oil or real estate, remain untouched.
Consultation on Bitcoin treasury impact
This controversy began in October when MSCI opened a consultation on the categorization of digital asset treasuries (DATs) in the index calculation guidelines. The proposed 50% threshold immediately brought Strategy, along with other Bitcoin-focused companies, into the consideration process.
In November, JPMorgan's analysis estimated that Strategy could face forced selling of about 2.8 billion USD if MSCI removed just one company, and it could expand to as much as 8–9 billion USD if other providers took the same approach.
These predictions have sparked public concern, along with increasing scrutiny of the discussion regarding the classification of companies holding Bitcoin treasuries in the index system.
For Strategy, the impact extends beyond merely being included in the index.
Removal could reduce liquidity and increase the company's cost of capital, and it may also narrow the role of the corporate treasury as a pathway for investors wishing to engage indirectly with Bitcoin.
For a broader range of investors, this event underscores the structural question of whether exposure to Bitcoin should be primarily through regulated exchange-traded funds or through publicly listed companies holding digital assets on their balance sheets.
The MSCI comment period remains open until December 31, with market participants closely monitoring as index providers consider their final decision.
