Strategy opposes MSCI's plan to exclude digital asset treasury companies from its Global Investable Market Indexes.
The firm criticizes MSCI's arbitrary 50% digital asset threshold and calls for a deeper review of the proposal.
Strategy emphasizes that Bitcoin holdings are integral to its business strategy and align with long-term growth, not just investment.
Michael Saylor’s company, Strategy, has strongly opposed MSCI’s proposal to exclude digital asset treasury companies from its Global Investable Market Indexes. The firm argues that the change would disrupt markets and harm investors.
Strategy Questions MSCI's Digital Asset Threshold and Rationale
In a detailed response to MSCI, Strategy argued that the proposal relies on a misunderstanding of Bitcoin treasury operations. The company stated that Bitcoin is not passively accumulated but is used to support product development and other activities. Strategy explained that digital asset treasuries operate like traditional financial institutions such as banks and insurance companies.
The firm criticized the 50% digital asset ratio suggested by MSCI as arbitrary and ineffective. Strategy claims that the rule could lead to unnecessary fluctuations in index movements. Digital asset prices are highly volatile, and the proposal could result in companies being added and removed from the index quickly.
Strategy also emphasized that its Bitcoin holdings are part of its core business strategy and not merely an investment fund. The firm pointed out that its treasury operations align with the long-term commitment to Bitcoin outlined by Michael Saylor. According to Strategy, Bitcoin serves as a key asset for the company’s operational growth.
Concerns Over MSCI's Impact on Crypto Market Stability
Strategy has warned that MSCI’s proposal could destabilize the crypto market by creating rapid volatility in indexes. The firm pointed out that different accounting standards across countries treat digital assets differently. This could result in inconsistent outcomes for companies in global markets
The company believes the proposed rule contradicts MSCI’s commitment to maintaining neutral and consistent index construction. Strategy argued that the policy-driven exclusion of digital assets would set a concerning precedent. The firm also mentioned that MSCI's approach would cause confusion among investors and analysts.
Furthermore, Strategy claimed that MSCI’s proposal is at odds with current U.S. federal policy. The U.S. government has been encouraging the use and development of digital assets, including Bitcoin. By implementing this exclusion, MSCI would undermine these efforts, according to Strategy’s response.
Strategy Urges MSCI to Let Markets Determine Value of Digital Asset Treasuries
Strategy urged MSCI to allow market forces to determine the value of digital asset treasury companies. The company noted that history shows emerging technologies often face skepticism before driving economic change. Therefore, it asked MSCI to maintain a neutral role in shaping market policies through index rules.
The firm also suggested extending the consultation period to better evaluate the rapid evolution of digital asset technologies. Strategy called for a deeper review of the proposal, one that reflects the current state of the digital asset market. The company reiterated that it opposes MSCI’s decision to impose arbitrary thresholds on Bitcoin treasury firms.As discussions between MSCI and MicroStrategy continue, Strategy’s opposition to the proposed exclusion remains firm. The review period for the proposed changes is set to conclude on January 15th.
