Strategy, the world’s largest Bitcoin treasury company, has formally requested MSCI not to exclude companies whose digital assets exceed 50% of their total assets from global indexes. In a letter, Strategy criticized MSCI’s proposed 50% threshold as flawed, warning that its approval would harm investors and the entire digital asset sector. Founded in 1989, Strategy operates differently from traditional investment funds by actively utilizing its Bitcoin reserves to generate profits for shareholders and providing financial services similar to banks and insurance firms. The company emphasized that digital asset treasury firms are operating companies capable of evolving their business models with technological advancements, not investment funds.
Strategy described MSCI’s proposal as unfair and impractical, noting that many traditional industries—such as oil companies, timber businesses, real estate investment trusts (REITs), and media firms—also hold a majority of their assets in a single type but are not classified as investment funds. Furthermore, fluctuations in asset prices, varying accounting standards, and valuation changes could destabilize the index, causing frequent inclusions and exclusions of these companies. The company also highlighted that the U.S. government has integrated digital assets into its national economic strategy, including the establishment of a strategic Bitcoin reserve during the Trump administration and promoting digital asset access in retirement accounts. Excluding digital asset companies from indexes would contradict government policies and hinder innovation in the sector.
Experts estimate that if MSCI enforces this proposal, Strategy alone could face billions of dollars in stock outflows, impacting the broader digital asset market. The letter referenced historical examples where investments in new technologies spurred economic growth across various industries. Finally, Strategy urged MSCI to reject the 50% threshold to allow the market to develop at its own pace while maintaining the impartiality of the indexes.
Source: bitcoinmagazine
