Strategy has taken a firm position against MSCI’s proposal to remove digital asset treasury companies from its Global Investable Market Indexes. Strategy said the change would hurt investors, disrupt markets, and conflict with national digital asset policy.
Strategy Challenges MSCI’s Digital Asset Threshold Proposal
The firm submitted a detailed response urging MSCI to withdraw the plan. The company stressed that the proposal relied on a mistaken view of how Bitcoin treasury firms operate.
It further warned that the 50% digital asset ratio is arbitrary and has zero positive effect. The letter highlights that Strategy is of the opinion that MSCI misunderstands companies that are holding massive Bitcoin reserves.
The company claimed that digital asset treasuries are not investment funds but companies. This stance aligns with the recent statements made by Michael Saylor confirming once again that Strategy has a long-term commitment to Bitcoin.
The letter said that Bitcoin is not passively accumulated by the company but supports product development and other operational activities of the company. Strategy further explained that its treasury business is like traditional financial systems which banks and insurance companies use. Another point that the company emphasized was that it is still in the software and analytics business as well as an active management style.
Does MSCI’s Rule Threaten Crypto Market Stability?
Strategy cautioned that the threshold suggested by MSCI would result in unstable index movements. It said digital asset prices move quickly and could push firms in and out of the index.
The company added that the rule would create confusion because different accounting standards treat digital assets differently. It said the approach would result in unfair outcomes across global markets.
Strategy believes this would break MSCI’s promise of neutral and consistent index construction. It further claimed that this would provide a bad precedent in policy-based exclusions. Still, negotiations between MSCI and MicroStrategy continues ahead of a January 15th review deadline.
According to the letter, the MSCI proposal is also against the current administration’s drive for digital asset development. Strategy mentioned that the initiatives of federal authorities is to encourage the use of Bitcoin and encourage the development and use of crypto assets.
Will MSCI Allow Markets to Decide DATs’ Value?
Strategy urged MSCI to let markets determine the value of digital asset treasury (DATs) companies. It said history shows that early technology leaders often face skepticism before driving major economic change.
The firm asked MSCI to maintain a neutral role and avoid shaping policy through index rules. It also asked MSCI to extend the consultation if concerns remain. Strategy said the best path forward is a deeper review that reflects the rapid evolution of digital asset technologies.
Source: https://coingape.com/strategy-challenges-msci-over-bitcoin-treasury-exclusion-plan/
