Strategy challenges MSCI plan to drop digital asset companies

Strategy urges MSCI to drop its plan to exclude digital asset treasury firms, arguing the proposal harms investors and misjudges the sector.

Strategy has now voiced its opposition to an MSCI proposal that would remove digital asset treasury companies from major indexes. 

The proposal targets firms that hold more than half of their balance sheets in digital assets and Strategy said the idea misjudges how these companies operate. The firm believes the decision would harm investors and send the wrong message to the market.

The letter from Strategy carried the signatures of Michael Saylor and its CEO, Phong Le. They said MSCI aims to bring order to index rules, yet this measure steps in the wrong direction. 

Strategy outlines why the threshold does not work

Strategy said that its structure makes it different from a fund. Instead, the firm functions as an operating company.

It manages its business each day, builds long-term plans and adapts as Bitcoin technology changes. The letter explained that firms like Strategy choose concentrated holdings for clear business reasons. 

The approach is similar to other familiar sectors. For example, real estate companies hold real estate. Oil firms hold oil reserves and Timber groups hold wood. All of these firms remain in MSCI indexes.

Strategy said the proposal treats digital asset companies harshly, and the firm noted that MSCI would need new methods to measure balance sheet composition.

Those methods would vary across regions and asset classes and that would create confusion for both analysts and market operators.Phong Le later expanded on this during an interview. 

He said the proposal sends the wrong signal to a growing field. He pointed to companies like Chevron, Weyerhaeuser and Simon Property Group, which hold large shares of their assets in one class. 

These firms face no threat of exclusion and Le said Strategy shares the same logic. 

Concerns about market distortion and lost access

Strategy warned that exclusion from MSCI indexes would bring changes to market behavior. JPMorgan analysts estimated that Strategy alone could face forced selling of nearly $2.8 billion. 

That figure shows index-linked funds that may need to exit their positions if the proposal becomes real.

Such pressure could push miners to change their approach. Miners often hold Bitcoin as part of their plan, and a sudden push to avoid heavy holdings might cause miners to sell more quickly. 

That move could change supply patterns and weaken long-term planning across the field.

Strategy also said the proposal could block many workers from gaining exposure to digital assets through pension plans.

Strategy points out issues with MSCI’s fund label

MSCI suggested that digital asset treasury companies may act like funds, but Strategy rejected this point. Le said the company has been public since 1998. 

It operates under a corporate structure compared to funds because staff members build products, manage operations and run the business each day. The firm also adds Bitcoin to its balance sheet as part of a long-running plan. 

Strategy said this differs from a fund that buys assets for outside clients.

Related Reading: Strategy Confirms Latest Buy Of 10,624 BTC for $962 Million

Why Strategy sees the proposal as misguided

Strategy believes that MSCI is misreading the nature of digital asset treasury companies, and said that Bitcoin serves as a core business tool. 

It helps shape long-term value and shields the company from weakening cash balances. Strategy said this approach follows clear business logic rather than speculative motives.

The letter argued that digital assets may become important parts of global finance at some point in the future. 

Because of this, Strategy said the proposal would slow access for many market participants. The firm said this restriction would also place digital asset firms at a disadvantage while other sectors enjoy index inclusion without such scrutiny.

Phong Le added that the proposal arrived too early. He said the field continues to grow and he urged MSCI to support that growth instead of setting narrow rules that limit progress.