Key Points
- Strategy delivered formal opposition to MSCI’s index screening framework, describing it as disproportionately harmful to bitcoin treasury operations.
- The proposed framework would subject companies with operating assets under 50% of total holdings to additional financial evaluations.
- Companies meeting four out of five screening criteria could lose eligibility for MSCI Global Investable Market Indexes.
- Strategy contends that current accounting frameworks lack clear definitions for distinguishing operating from non-operating assets.
- Simulations run in May 2026 indicated Strategy, Metaplanet, and Yellow Cake face potential removal, with SharpLink placed under observation.
Strategy has submitted formal opposition to MSCI’s recent proposal that threatens to exclude certain digital asset treasury operations from major global indexes. The letter, bearing signatures from Executive Chairman Michael Saylor and CEO Phong Le, contends the framework disproportionately affects companies maintaining substantial bitcoin reserves and similar holdings.
The bitcoin treasury company maintains that MSCI’s proposal relies on ambiguous criteria when distinguishing operating assets from non-operating holdings. Strategy further cautioned that the screening methodology could create unequal treatment between digital asset treasury operations and traditional asset-holding corporations.
Strategy Disputes MSCI Framework
MSCI launched its public comment period last month during a comprehensive examination of entities maintaining significant holdings beyond conventional operating assets. The proposal would require companies showing operating assets below 50% of total holdings to undergo five supplementary financial evaluations.
Any entity meeting at least four of these criteria risks losing index inclusion. Strategy maintains the approach establishes a screening mechanism that could eliminate digital asset treasury operations while preserving index eligibility for other asset-centric enterprises.
Strategy emphasized that U.S. GAAP, IFRS standards, and securities regulations provide insufficient clarity regarding “operating” versus “non-operating” asset classifications. This ambiguity, the company states, undermines consistent application of MSCI’s proposed categorization system.
Strategy highlighted its treatment of bitcoin holdings as an operating division. The company reports Bitcoin-related gains and impairments within operating expenses following consultations with the U.S. Securities and Exchange Commission.
Multiple Companies Face MSCI Scrutiny
MSCI conducted an earlier assessment of digital asset treasury entities in 2025, ultimately deciding in January to maintain their index inclusion. The organization subsequently extended its analysis and released the current framework proposal.
Simulations conducted for May 2026 flagged Strategy, Metaplanet, and Yellow Cake for potential exclusion. SharpLink entered the monitoring list. Strategy contends the framework could impose stricter requirements on digital asset treasury companies compared to REITs, timber enterprises, or energy infrastructure operators.
Strategy requested MSCI abandon the proposal entirely. Should MSCI proceed, the company advocates for any new standards to draw from established accounting or regulatory frameworks and apply exclusively after final policy implementation.
MSCI will collect stakeholder input through September 30. The index administrator intends to publish its determination by October 16, implementing approved modifications in December. Strategy stock climbed 4.42% Monday, reaching $132.94. The enterprise acquired 4,603 bitcoin during the previous week at an average cost of $80,318 per unit.
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