Strategy, Inc., the largest corporate holder of Bitcoin (BTC), has formally lodged a protest against index provider MSCI’s proposal to delist companies with BTC reserves exceeding 50% of total assets.
In a letter sent to the MSCI Index Committee, the company (formerly known as MicroStrategy) called the effort “arbitrary” and “discriminatory” and contrary to both U.S. policy and technological developments related to Bitcoin.
CriptoNoticias reported that the move came after the company’s executive director, Michael Saylor, confirmed that the company was in talks with MSCI due to the risk of being removed from indexes such as MSCI USA and MSCI World.
According to JP Morgan estimates, Delisting could result in capital outflows of up to $8.8 billion If other suppliers reproduce the measures. That could put further pressure on Strategy’s stock price, which is already down 39% so far this year, as seen below.
The company claims the proposed rules “inappropriately introduce political considerations” and violate the principle of neutrality that stock indexes must uphold. “This proposal is inconsistent with U.S. policy and would stifle innovation,” Strategy argued in the letter.
Excluding companies that accumulate BTC is “unequal treatment”
The document notes that it only excludes companies with high levels of Bitcoin holdings. Unequal treatment compared to sectors with concentrated assetsoil, gold mining, real estate, timber, etc.
Strategy also notes that its model is not limited to holding Bitcoin; We use it to provide backed financial products With digital currency. The company said delisting would impact its ability to raise capital and issue debt to continue its accumulation strategy.
The company also recalled that the current US government said: Promote technology development based on digital assetsAs such, MSCI’s proposal would be a measure that is “inconsistent” with these guidelines.
Strategic CEO: “MSCI’s proposal lacks information and is unrealistic”
Strategy CEO Phong Le reinforced these claims in a recent interview, saying: The measures are “poorly informed and poorly planned.”
In his words:
They characterize us as a fund rather than an operating company. We are not a passive vehicle, but a company with a traditional corporate structure and daily activities. The 50% threshold is arbitrary and difficult to enforce. Companies that rise from 55% to 30% will be subject to an unworkable mechanism. The main concern is that the indicators need to be neutral and that public policy considerations are introduced here. When applying this criterion, companies like Chevron and Newmont should also be excluded due to their concentrated assets.
Von Leh, CEO, Strategy;
Additionally, he expected: Accelerating the growth of Bitcoin-based financial services He questioned whether MSCI intends to discontinue this development in the near future.
“We will see full Bitcoin custodial services, exchanges, lending, staking, and new industries begin to flourish. “It is therefore strange that the index would now decide to stifle this progress and openly oppose what the US government has supported,” he said.
MSCI has not yet made a final decision. We’ll find out on January 15th. Meanwhile, Strategy argues that excluding companies with large Bitcoin reserves would distort the index’s function and send a negative signal to the sector. The company requested an extended consultation period before adopting the changes.
(Tag Translation)Bitcoin (BTC)
