- Potential exclusion of Strategic from MSCI indices affects $9 billion demand for shares.
- MSCI proposes excluding companies with high holdings of digital assets.
- Companies argue that exclusion discriminates against the cryptocurrency sector.
Strategic, known for its Bitcoin holdings, may face exclusion from MSCI indices, impacting up to $9 billion in demand for its shares, as MSCI assesses companies focused on digital assets.
This potential change raises concerns about the stability of the cryptocurrency industry and highlights the sector's investment risks, which could lead to broader implications in financial markets.
## Proposal to exclude cryptocurrencies from MSCI raises $8.8 billion demand risk
MSCI proposed excluding companies that own more than 50% of their digital assets from its indices, considering them more akin to investment funds. This action primarily targets Strategic, as its Bitcoin strategy represents 74.5% of the affected market value. MSCI aims to make a final decision by January 15, 2026. If excluded, Strategic may face noticeable demand impacts with a potential loss of up to $8.8 billion due to decreased attractiveness resulting from exclusion from indices like Nasdaq 100 and others. This may force companies to reassess their asset allocation.
BitcoinForCorporations, linked to the Michael Saylor network, criticized the MSCI proposal as discriminatory, suggesting enhanced disclosure instead of exclusion. The group argues that these companies engage in real operational activities and are not just holding assets. BitcoinForCorporations also stated: "The MSCI approach is discriminatory towards cryptocurrency treasuries, as it does not exclude companies that own gold or bonds, and we recommend enhancing disclosure instead of exclusion." Many companies, inspired by previous strategic actions, fear the sustainability of holding cryptocurrency assets on their balance sheets.
