Strategy Opposes MSCI Plan to Exclude Digital Asset Treasury Firms

The company, formerly known as MicroStrategy, warns that MSCI’s proposed 50% asset threshold could harm innovation, market access, and billions in holdings.

BTC

Summary

Strategy, previously MicroStrategy, has formally opposed MSCI’s proposal to exclude digital asset treasury companies (DATs) with more than 50% digital assets from its indexes. In a letter signed by Michael Saylor and CEO Phong Le, the firm argued the plan is discriminatory, likening DATs to sectors such as real estate and oil that hold concentrated asset classes without similar exclusion. Strategy warned the move could restrict access to Bitcoin-based investments for pension funds and 401(k) plans, reduce innovation in the cryptocurrency industry, and potentially result in $2.8 billion in liquidations in its case alone. The company urged MSCI to adopt a more measured approach, citing past reorganizations like the Communication Services sector review.

Terms & Concepts
  • Digital Asset Treasury Companies (DATs): Firms that hold significant amounts of cryptocurrencies, such as Bitcoin, on their balance sheet as part of their corporate strategy.
  • MSCI (Morgan Stanley Capital International): A financial services company providing global equity indexes, research, and analytics used by institutional investors.
  • Balance Sheet Concentration Threshold: A regulatory or index criterion setting the maximum allowable percentage of a specific asset type on a company’s balance sheet before exclusion or reclassification.