Strategy says MSCI’s 50% bitcoin test risks index ‘whiplash’ and conflicts with US pro-innovation policy

Strategy is urging MSCI to drop a proposal that would bar companies whose digital-asset holdings exceed 50% of total assets from its global equity benchmarks, warning the move would create unstable index churn and contradict the U.S. government’s push to foster digital-asset innovation.

In a 12-page letter to the MSCI Equity Index Committee on Wednesday, Strategy argued that bitcoin-treasury firms would “whipsaw on and off” major indexes if bitcoin prices move or accounting standards differ, creating “chaos and confusion” for index providers and investors.

MSCI has argued that digital asset treasuries (DATs) like Strategy and BitMine function more like investment funds than traditional operating businesses, which MSCI’s core equity indexes typically avoid. Critics, however, have pushed back against that description, saying it could ignore other operational activities and that MSCI’s proposed 50% threshold is arbitrary, especially as more U.S. corporations build crypto treasuries.

In its letter, Strategy also argued the rule would be impossible to apply consistently because firms reporting under IFRS can keep bitcoin at cost, while U.S. GAAP requires quarterly fair-value marks, meaning two businesses with identical exposure could be treated differently solely based on jurisdiction.

The company also framed the proposal as clashing with U.S. policy. Strategy pointed to initiatives from the Trump administration promoting digital-asset development — including the Strategic Bitcoin Reserve, expanded 401(k) access, and directives encouraging “technology-neutral” treatment of crypto companies — and argued that MSCI’s test would effectively block bitcoin-reserve firms from the roughly $15 trillion passive-investment universe.

“Digital assets represent a technological innovation that can serve as the potential future bedrock of global financial systems,” the letter said, warning that excluding firms like Strategy would “stifle innovation” and undermine index neutrality. The company added that MSCI should avoid rushing a decision based on a “mischaracterization” of how bitcoin-treasury firms operate.

The dispute began in October, when MSCI said it was reviewing whether digital-asset treasury companies should remain in its Global Investable Market Indexes. Any change would most directly hit Strategy, the largest public bitcoin holder with 660,624 BTC worth nearly $61 billion, according to The Block data.

Mounting industry pushback

A final decision by MSCI is expected by Jan. 15 ahead of the February index rebalancing.

JPMorgan analysts estimated last month that the company could face roughly $2.8 billion in passive outflows if it is removed, with the figure rising as high as $8.8 billion if other index providers follow.

The letter follows Strategy Chairman Michael Saylor’s public comments in November, when he argued the company is “not a fund” and that index classification “doesn’t define” its business.

Other big bitcoin treasury players like Strive have similar concerns, telling MSCI last week that the 50% threshold could produce inconsistent treatment across jurisdictions and suggested offering optional “ex-digital-asset treasury” variants for clients that want to be excluded from the category.

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