Strategy (MSTR) has sent a formal letter opposing MSCI’s proposal to exclude companies whose digital asset holdings exceed 50% of total assets from its global indexes. Led by Executive Chairman Michael Saylor, the firm argued that digital-asset-heavy companies are real operating businesses, not investment funds, and that their Bitcoin holdings function as productive corporate capital.

Strategy said the 50% threshold is arbitrary and discriminatory, noting that many firms hold concentrated reserves in other asset classes without being excluded. The company warned that the proposal could trigger massive passive outflows, harm U.S. competitiveness and innovation, and undermine federal policies that now support digital asset development.

The letter also raised national security concerns, citing the Trump administration’s pro-crypto stance. Strategy urged MSCI to extend the consultation process and reconsider the rule, arguing that excluding crypto-buying companies would damage MSCI’s neutrality as an index provider.

JPMorgan previously estimated that Strategy could face up to $2.8 billion in outflows if the rule is adopted. MSTR shares have fallen sharply over the past six months as pressure mounts.