Strategy Urges MSCI to Withdraw Proposed Exclusion of Digital Asset Treasury Firms

Strategy has asked global index provider MSCI Inc. to withdraw a proposal that would exclude digital asset treasury companies from its Global Investable Markets Indexes. The firm described the initiative as biased and argued that it repackages a previously withdrawn 2025 proposal aimed at companies with more than 50% of their assets in digital currencies under a new definition of non-operating entities.

MSCI's framework seeks to remove firms that primarily hold passive assets rather than generating cash from active operations. If implemented, the rule would affect Strategy, Japan's Metaplanet, and a uranium-holding firm. Strategy countered that the classification violates U.S. GAAP standards, securities law, and SEC guidance, noting that it reports its Bitcoin business as an operating segment and its gains or losses as operating expenses.

Feedback on the MSCI proposal is scheduled through the end of September, with potential implementation taking effect on December 1. Founder Michael Saylor and CEO Phong Le urged the index provider to remain neutral, comparing its stance unfavorably to index managers like S&P and Nasdaq. While JPMorgan analysts previously warned that such exclusions could trigger up to $2.8 billion in MSTR fund liquidations, Strategy noted that MSCI-tracking funds represent only about 3% of its outstanding shares.