Strategy Challenges MSCI Proposal to Exclude Digital Asset Treasury Firms

Strategy challenges MSCI plan to remove crypto-focused firms

Strategy, a large digital asset treasury firm, has formally opposed a proposal from index provider MSCI that could lead to the removal of certain companies from its global stock indices. Strategy described the move as a disguised effort to exclude firms that hold digital assets like Bitcoin as part of their corporate treasury.

The company submitted a formal letter on Monday signed by Executive Chairman Michael Saylor and CEO Phong Le. The letter called the proposal discriminatory and misguided. Strategy argued that the changes would not hurt its own business but would damage MSCI's reputation as a neutral provider of indices, which are lists used to track market performance.

Main points of the dispute

• MSCI is considering new rules for companies where "operating assets" make up less than 50% of total assets.
• Firms falling below this threshold would face five additional financial examinations.
• Strategy claims the proposal unfairly targets digital asset treasury (DAT) firms while sparing other asset-heavy businesses like timber or energy companies.
• A simulation showed that Strategy and Metaplanet would be removed from the indices if the rules are adopted.

What Strategy stated in its official letter

In its letter, Strategy argued that the proposal is a "pretext" for targeting crypto-focused companies. The firm pointed out that the terms "operating" and "non-operating" are not clearly defined in standard accounting rules like U.S. GAAP or IFRS. Strategy stated that it treats its Bitcoin holdings as an operating segment and records related expenses after discussions with the Securities and Exchange Commission (SEC).

Strategy requested that if MSCI moves forward, the rules should only apply to future filings. The company also asked for a clear explanation of why these specific screening methods are necessary and how MSCI distinguishes between different types of business activities.

How the proposed screening would work

The consultation opened by MSCI last month suggests that companies with operating assets lower than 50% of their total assets would undergo extra scrutiny. If a company triggers at least four out of five specific financial-ratio flags, it would become ineligible for the index. This follows a previous review in 2025 where MSCI eventually decided not to exclude digital asset firms after receiving industry feedback.

Uncertainty regarding financial definitions

A major point of confusion remains how assets are classified. Strategy notes that MSCI treats Bitcoin as a non-operating asset. However, Strategy maintains that its digital asset activity is a core part of its operations. There is currently no unified legal or accounting standard cited by MSCI to define these categories objectively.

Why this matters for digital asset firms

The proposal specifically impacts companies that choose to hold Bitcoin or other digital assets instead of traditional cash. If these firms are removed from major indices, they may lose visibility among institutional investors who track those lists. Strategy argued that the test would concentrate its impact on DATs while leaving other industries, such as real estate investment trusts, unaffected.

Dates for the final decision

MSCI is currently accepting feedback on the proposal until September 30, 2026. The index provider plans to announce the results of the consultation by October 16, 2026. If the changes are approved, they are expected to go into effect in December 2026.

Sources

• The Block