Strategy Counters MSCI FUD Tied to October 10th Bitcoin Crash

MSCI’s review of how to classify companies with large Bitcoin holdings has become central to ongoing discussions about the sharp market decline that began on October 10th, 2025. 

The index provider is assessing whether companies whose digital-asset holdings make up the majority of their assets should continue to qualify for inclusion in its equity benchmarks. 

The consultation opened on October 10th and runs through December 31st, with conclusions expected January 15th, 2026, and possible implementation in February 2026.

The official MSCI document states that the review applies to “companies whose primary business model involves Bitcoin or other digital asset activities, including cases where capital raising activities are used mainly to accumulate digital assets.”

The firm is considering excluding companies whose digital-asset holdings represent 50 percent or more of total assets from its Global Investable Market Indexes.

Analysts Debate Whether the Consultation Triggered the Market Drop

Ran Neuner has linked the October 10th downturn directly to the release of the MSCI consultation, arguing that the timing explains the sudden decline and lack of recovery. 

He said the announcement clarified “why the big crypto crash started on October 10th” and claimed that Digital Asset Treasury companies such as Strategy and others have been major buyers throughout the cycle.

According to his analysis, reclassification could cause these firms to be removed from passive indexes, leading to forced selling by index-tracking funds. 

Neuner said that if the proposal is adopted, “companies like MSTR will be automatically removed from all indices,” which he believes could influence both institutional flows and overall market structure. 

He characterized the October 10th downturn as “not a coincidence” and said the market may have immediately priced in the potential risk.

Strategy Rejects the Fund Classification View

Strategy founder and chairman Michael Saylor issued a public response emphasizing that his company is an operating enterprise, not a passive investment vehicle. 

In his statement, he wrote: “Strategy is not a fund, not a trust, and not a holding company. We’re a publicly traded operating company with a $500 million software business and a unique treasury strategy that uses Bitcoin as productive capital.”

Saylor also highlighted the company’s issuance of multiple digital credit instruments this year, totaling more than $7.7 billion in notional value, and the launch of STRC, a Bitcoin-backed credit product. 

He contrasted Strategy’s activities with passive structures, stating: “Funds and trusts passively hold assets. Holding companies sit on investments. We create, structure, issue, and operate.”

He added that “index classification doesn’t define us,” and reiterated that the company’s long-term mission remains focused on building what he describes as a digital monetary institution.

Uncertainty Ahead of MSCI’s January Decision

The consultation has become a key point of uncertainty for both equity and digital asset markets as investors consider the implications for companies whose balance sheets are heavily weighted toward Bitcoin. 

Some analysts warn that index exclusion could affect liquidity and capital access for digital-asset treasury firms, while others argue that their operational structures distinguish them from investment funds and justify continued index inclusion.

With MSCI’s decision scheduled for mid-January, market participants expect ongoing volatility until the firm clarifies how it intends to classify companies with substantial Bitcoin holdings.