The company considers the criterion unfeasible and warns of the risk of chaotic reclassification of indices. Strategy opposed the proposed MSCI rule, which would exclude from global stock indices companies whose digital assets exceed half of their total assets.
According to the firm, such an approach will create instability in benchmarks, distort business valuation, and directly contradict the US policy of developing the digital economy.
The corresponding position is outlined in a 12-page letter sent to the MSCI index committee. Strategy emphasizes that if you focus on a volatile asset like bitcoin, companies will be ‘thrown out’ of the index and returned again every time the market makes a sharp move. As a result, investors will face unpredictable rebalancing, and index providers will face operational chaos.
Problem #1: Different accounting standards make the rule inapplicable
The letter notes that identical business models will be classified differently depending on where the company is registered.
Under international IFRS rules, bitcoin is recorded at cost and not revalued at market. In the US, however, GAAP requires regular revaluation to fair value.
Result: two firms with the same amount of BTC reserves may either pass the MSCI threshold or not — simply because they operate under different accounting standards. According to Strategy, such a criterion is not only unfair but also technically unfeasible for global classification.
MSCI considers crypto treasuries ‘pseudo-funds’, but the industry disagrees
The index regulator previously indicated that companies holding significant amounts of cryptocurrencies resemble investment funds more than operating businesses. Strategy and other market participants disagree with this comparison: they insist that crypto reserves are part of corporate strategy, not an attempt to create an ETF within a public company.
Critics emphasize that many US corporations are already forming digital reserves, and the MSCI restriction will effectively create an arbitrary barrier for a new class of treasury assets.
Contradiction to US policy: ‘a brake on innovation’
Strategy also stated that the MSCI initiative runs counter to current government policy. The company referred to several Trump administration initiatives — creating a strategic reserve in bitcoin, expanding opportunities for pension plans, and a call for ‘technologically neutral’ regulation.
According to Strategy, if the largest index provider implements a 50 percent threshold, it will effectively close access for bitcoin treasuries to passive capital. About $15 trillion in global assets are tied to these indices — and excluding such companies will deprive the sector of critically important liquidity.
The company emphasized:
‘Digital assets are the infrastructure technology of future finance. Excluding firms working with them will hinder innovation and violate the principle of index neutrality.’
It’s not just about Strategy: the industry is ramping up pressure
The MSCI initiative has caused a noticeable response. A decision is expected on January 15, and changes could take effect as early as February. Bank analysts have calculated the potential scale of losses: if the largest BTC treasury company is excluded from the index, automatic outflows from passive funds could range from $2.8 billion to $8.8 billion if other index systems follow MSCI’s example.
Strategy — currently the largest public bitcoin holder, holding more than 660,000 BTC worth nearly $61 billion — will come under maximum pressure.
Other market participants have also joined the discussion. For example, Strive warns that a single threshold will lead to different interpretations of the same assets in different countries. Among the proposals is to create parallel versions of indices that exclude companies with digital reserves, but not to change the basic calculation standards.
What’s next?
The discussion is entering its final phase, and industry participants are increasing pressure on MSCI. The outcome of the debate will determine not only the balance of power in the indices, but also how global markets will interpret corporate crypto reserves: as a strategic asset or as an investment fund.
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