Strategy (NASDAQ: MSTR) has firmly rejected MSCI’s proposal to exclude digital asset treasury companies from its Global Investable Market Indexes. In a detailed response, the firm urged MSCI to reconsider its plan, arguing that the proposed changes could destabilize markets, confuse investors, and undermine national digital asset policies.
Strategy's response highlighted what it perceives as a misunderstanding by MSCI about how Bitcoin treasury companies operate. The firm pointed out that these companies are not investment funds, but active businesses that hold Bitcoin to support operational activities, including product development. According to Strategy, the idea that Bitcoin reserves are accumulated passively is inaccurate. They emphasized that their treasury operations resemble traditional financial systems used by banks and insurance companies, which are recognized in global financial markets.
Concerns Over MSCI’s 50% Digital Asset Threshold
At the core of Strategy’s argument is the 50% digital asset threshold proposed by MSCI. The company argued that this arbitrary ratio would not benefit investors and could lead to volatile index movements. The quick fluctuations in digital asset prices could push firms in and out of the index, potentially distorting market behavior. This could lead to confusion, as digital assets are treated differently by accounting standards in various countries.
Strategy also questioned how the new rule could undermine MSCI's promise of neutral and consistent index construction. It stated that MSCI’s proposed policy would create unfair outcomes across global markets due to the lack of a consistent approach to digital assets. Strategy further warned that setting such a precedent for policy-based exclusions would be detrimental to market stability.
Opposition to Policy-Based Exclusions
Additionally, Strategy stressed that MSCI’s proposal contradicts the efforts of national governments, including the U.S. administration, to encourage digital asset development. The strategy argued that federal initiatives aim to foster the use of Bitcoin and other crypto assets. Thus, excluding companies with large Bitcoin holdings from major indices would go against these goals.
In sum, Strategy’s opposition to MSCI’s proposal reflects a belief that it could disrupt both market stability and investor confidence. By mischaracterizing the role of digital asset treasuries and applying an arbitrary threshold. MSCI risks creating confusion and instability in the broader market.
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