Strategy (formerly MicroStrategy) has responded strongly to a key MSCI advisory process that could decide the fate of companies that hold Bitcoin (BTC) as a strategic asset on their balance sheets.
The company has filed a formal comment on MSCI’s proposed plan to remove Digital Asset Treasury Companies (DATs) from its Global Investable Market Index, calling the proposal “arbitrary, discriminatory and policy-driven.”
It is estimated that there could be an $8 billion asset outflow if the strategy were to be delisted from the index.
In a detailed letter to MSCI, Strategy emphasized that DAT operates as an operating company, not a mutual fund. “DAT is not a passive Bitcoin fund, but actively uses Bitcoin to create value for shareholders,” the company said. Strategy also said it is currently developing innovative digital lending products backed by Bitcoin, similar to those historically offered by banks and insurance companies.
Strategy argued that MSCI’s proposed rule to exclude digital assets from indexes if 50% of their balance sheet consists of digital assets is a discriminatory act specific to the sector. The company noted that other companies concentrated in a single asset class, such as oil, gold, real estate or media, do not receive such treatment.
The letter also said the rules in question are effectively unenforceable, and that asset price fluctuations, differences in accounting rules, and differences in international reporting could cause DATs to constantly move in and out of the index, creating instability.
While the strategy states that MSCI’s mission is to fairly reflect financial markets, the proposals target specific asset types and incorporate policy elements into the index methodology. This, they argued, would undermine MSCI’s role as an unbiased index provider and create confusion for investors.
The company argued that the proposal runs counter to the United States’ goal of leadership in digital asset technology and would undermine investment and innovation in the field. The report noted that Bitcoin and digital assets could play an important role in the future of the world’s financial infrastructure, and it is premature to exclude such companies.
Strategy Chair Michael Saylor also said in a statement that he opposes MSCI’s plans, saying:
“Strategy has submitted a response to MSCI’s consultation on digital asset treasury companies. Index criteria should be neutral, consistent and reflect the evolution of global markets.”
Saylor called on the community to read the letter and show their support.
The company requested MSCI to completely withdraw the proposal. Instead, it said it should follow years of evaluation, sector maturation, and an extensive public consultation process, just as MSCI did when it created the “Communications Services” sector.
*This is not investment advice.
