Strategy Challenges MSCI Plan to Drop Digital Asset Treasury Firms from Equity Indexes

Led by Executive Chairman Michael Saylor, the company opposes MSCI’s 50% threshold proposal, warning it could harm innovation and U.S. competitiveness.

BTC

Summary

Strategy (MSTR), led by Executive Chairman Michael Saylor, has formally opposed MSCI’s proposal to exclude companies holding digital assets totaling 50% or more of their assets from MSCI Global Investable Market Indexes. The firm argues digital asset treasury companies (DATs) are operating businesses using cryptocurrency as productive capital rather than passive investment vehicles. Strategy lists operational, legal, and tax reasons it should not be classified as an investment fund and highlights its bitcoin-backed credit instruments, active treasury management, and global analytics software operations. The company claims the threshold is arbitrary, noting other sectors hold concentrated reserves yet remain index-eligible, and warns exclusion could trigger billions in passive outflows, weaken American competitiveness, and slow financial technology growth. Strategy urges MSCI to extend consultations and provide more detailed justification.

Terms & Concepts
  • Digital Asset Treasury Companies (DATs): Operating businesses that hold significant cryptocurrency reserves as part of their corporate strategy rather than functioning as passive investment funds.
  • MSCI Global Investable Market Indexes: A suite of global equity benchmarks maintained by MSCI (investment index provider) that measure performance of investable markets worldwide.
  • mNAV (Market Net Asset Value): The premium or discount at which investors value a company compared to the market value of its holdings, such as Bitcoin reserves.