Strategy has called on global index provider MSCI Inc. to withdraw a proposal that would exclude companies classified as 'non-operating'—those that primarily buy and hold assets rather than engage in active business operations. The firm argues the exclusion framework is biased and specifically targets digital asset treasuries (DATs).
Under MSCI's expanded exclusion framework, companies including Strategy, Metaplanet, and firms holding other alternative assets could be removed from MSCI's Global Investable Markets Indexes. Strategy contends that Bitcoin holdings should be classified as operating assets under U.S. GAAP and SEC guidance, with gains and losses treated as operating expenses rather than investment income.
Legal and Market Concerns
Strategy argues the proposal conflicts with U.S. accounting standards, securities law, and MSCI's obligation to maintain market neutrality. The firm noted that major index providers including S&P, FTSE, Bloomberg, Nasdaq, and ICE continue to include companies with significant digital asset holdings.
Michael Saylor, founder of Strategy, urged MSCI to act as "a mirror of the market, not an arbiter of it," while CEO Phong Le highlighted that MSCI's approach diverges from other major index providers and established securities frameworks.
Potential Financial Impact
JPMorgan analysts previously estimated that MSCI exclusion could trigger approximately $2.8 billion in fund liquidations for Strategy shares. The analysis noted that exclusions from other indices, including LSEG's Russell index and Nasdaq, could result in nearly $9 billion in total outflows across the DAT sector.
Strategy downplayed the potential immediate impact, noting that funds tracking MSCI indices represent roughly 3 percent of its outstanding shares—equivalent to approximately 60 percent of one day's trading volume. However, analysts warned that exclusion could reduce liquidity and make DAT stocks less attractive to institutional investors.
Feedback on the MSCI proposal is open until the end of September, with an expected implementation date of December 1st if adopted.
