Strategy urges MSCI to drop index exclusion plan targeting digital asset firms
Bitcoin treasury Strategy is challenging MSCI’s proposed index exclusion rules, warning that targeting corporate digital asset holders undermines the index provider's neutrality and institutional reliability.
Strategy formally objected to Morgan Stanley Capital International’s proposal to remove non-operating companies from its Global Investable Market Indexes. In a letter sent Monday, founder Michael Saylor and CEO Phong Le urged the index provider to abandon the consultation.
The company argued that the initiative is flawed and unfairly singles out digital asset businesses. "MSCI’s continued effort to discriminate against digital assets is misguided and calls into question MSCI’s neutrality and reliability," the executives wrote.
This dispute follows a similar 2025 consultation where MSCI considered excluding firms with digital assets comprising 50% or more of total assets. That previous proposal was ultimately withdrawn by the index provider.
Strategy described the new methodology for targeting these firms as "arbitrary and unexplained." The letter stated: "The proposal, like the 2025 proposal that MSCI withdrew, is discriminatory, arbitrary, and misguided."
The executives warned that while the rule change "would have no meaningful impact on Strategy’s business, it would profoundly harm MSCI’s reputation as a reliable and neutral index provider." They demanded the current proposal be withdrawn.
At the core of the disagreement is how the cryptocurrency is classified on corporate balance sheets. Strategy maintains that it reports its Bitcoin operations as a distinct operating segment. Furthermore, the firm treats associated price gains and losses as operating expenses, directly contradicting MSCI's classification of the holdings as non-operating assets.
The Nasdaq-listed firm employs 1,500 people globally and actively leverages its cryptocurrency reserves to "create shareholder value." Originally an enterprise software company, the business completely pivoted its corporate strategy to accumulate Bitcoin starting in 2020.
Strategy is currently the largest corporate holder of the cryptocurrency in the world. Its treasury contains 845,050 bitcoins, which are valued at $65.8 billion at current market prices.
Market participants frequently trade the company's Nasdaq-listed equity, MSTR, to gain amplified exposure to the cryptocurrency's price action. The shares closed 4% higher on Monday, even though the stock remains down 15% year-to-date.
