Strategy Pushes Back on MSCI Plan to Exclude Crypto-Heavy Firms, Warning of Bias Against Digital Assets

• Strategy opposed MSCI’s proposal to exclude firms with over 50% crypto holdings, arguing it misrepresents digital-asset treasury operations.
• The company warned the policy could bias indexes against crypto, create instability, and conflict with US federal initiatives promoting Bitcoin innovation.
• Strategy highlighted accounting differences, volatility, and concentrated asset norms in other sectors as reasons the policy is arbitrary and potentially disruptive.

Strategy has submitted a detailed response to MSCI opposing a proposed policy that would remove companies holding more than half of their assets in cryptocurrencies from global equity benchmarks. The firm argued that the proposal misrepresents how digital-asset treasury companies operate, as they actively manage Bitcoin through capital-markets strategies and structured credit products rather than acting solely as passive investment vehicles.

The company criticised MSCI’s 50% threshold as both arbitrary and unworkable. Strategy highlighted that concentrated asset positions are common in multiple sectors, including energy infrastructure, real estate, oil, and entertainment, yet these industries are not excluded from indexes. 

Additionally, the letter noted that variations in accounting rules, such as IFRS versus US GAAP, could result in inconsistent treatment of firms with identical crypto exposure, undermining the stability and neutrality of MSCI’s indexes.

Strategy also warned that excluding digital-asset-heavy firms would create bias against crypto while allowing other concentrated asset classes, such as mortgage-backed securities and REITs, to remain eligible. 

The letter stated that the change could distort the US$15 trillion (AU$22.48 trillion) passive-investment ecosystem, stifle innovation, and conflict with US federal policies designed to promote Bitcoin adoption and technological neutrality in financial markets.

Related: Crypto Index Funds Set to Explode in 2026 as Investors Seek Broad, Simple Market Exposure

Bitcoin Volatility Could Impact Index Stability

The company cited potential market consequences, including index instability and forced outflows worth billions of dollars, if MSCI implements the proposal. 

The volatility of Bitcoin could cause companies to oscillate in and out of the indexes depending on price movements or accounting standards, producing confusion for investors. Strategy currently holds 660,624 BTC, valued at approximately US$61 billion (AU$93.9 billion).

The letter concluded by urging MSCI to withdraw or extend the consultation period, warning that premature policy changes could impede innovation, distort market incentives, and compromise the credibility and neutrality of the indexes.

Related: Bank of America Opens the Door to Crypto Allocations for Wealth Clients

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