Strive Asset Management, led by Vivek Ramaswamy, has strongly opposed MSCI’s recent proposal to exclude companies holding more than 50% of their assets in Bitcoin from major equity indices. In a letter to MSCI CEO Henry Fernandez, Strive warned that this plan could produce globally uneven outcomes due to differing Bitcoin reporting standards under US GAAP and international IFRS accounting frameworks. This discrepancy may lead to inconsistent treatment of companies with similar Bitcoin exposures. Strive, a Nasdaq-listed firm with significant Bitcoin holdings, urged MSCI to prioritize optional index versions such as “ex-digital-asset treasury,” similar to existing sector-specific indices for energy and tobacco, rather than redefining index eligibility. The company argued that imposing a separate standard for Bitcoin holdings undermines index neutrality and that market participants should determine the inclusion of Bitcoin-heavy firms. Strive criticized the 50% threshold as unfair and impractical, highlighting that many Bitcoin-holding companies operate in diverse sectors like AI data centers, financial services, and cloud infrastructure, with some crypto miners leasing excess energy and computing capacity. The firm also noted that companies holding oil or gold are not excluded from indices, and applying different criteria for Bitcoin could harm index impartiality. The volatility of Bitcoin prices and varying accounting methods could cause companies to move in and out of indices each quarter, creating uncertainty for investors. Strive cautioned that stringent rules might stifle innovation in Bitcoin-backed financial products and weaken the competitiveness of the US market, while international firms adhering to IFRS might gain an advantage. MSCI is expected to finalize its decision by January 15, 2026, with index reviews following in February. Strive and other companies are actively lobbying against the proposal, advocating for a fair and neutral market environment.
Source: bitcoinmagazine
