Bitcoin treasury firm Strategy has strongly criticized Morgan Stanley Capital International’s plan to leave it out of its Global Investable Market Indexes, labeling the initiative both “flawed” and “misguided.”
In a Monday letter sent to MSCI, Phong Le, the CEO of the Nasdaq-listed Bitcoin giant, alongside founder Michael Saylor, asserted that the firm was facing discrimination regarding its digital asset operations.
Earlier this month, MSCI announced a consultation concerning a strategy to establish a definition for “non-operating companies” and strip them of eligibility for its Global Investable Market Indexes. Should these firms be removed, entities like Strategy would disappear from indexes accessed by a vast number of institutional investors.
This new initiative from MSCI follows a 2025 proposal in which the company sought to bar any firms holding digital assets equal to or exceeding 50% of their total assets from its indexes.
According to Strategy’s letter, “MSCI’s continued effort to discriminate against digital assets is misguided and calls into question MSCI’s neutrality and reliability.”
The letter additionally stated: “The proposal, like the 2025 proposal that MSCI withdrew, is discriminatory, arbitrary, and misguided. If adopted, the proposal would have no meaningful impact on Strategy’s business, but it would profoundly harm MSCI’s reputation as a reliable and neutral index provider. Like the 2025 proposal, the current proposal should be withdrawn.”
Strategy pointed out that MSCI is utilizing unprecedented criteria to categorize Bitcoin as a “non-operating” asset. The firm noted that it officially categorizes its Bitcoin operations as an operating segment and logs its Bitcoin-related gains and losses under operating expenses.
The enterprise claimed that MSCI’s approach to singling out “non-operating companies” remains “arbitrary and unexplained,” serving merely as a mechanism to unfairly target digital asset treasuries.
Furthermore, Strategy highlighted that it functions as a true operating entity with a global workforce of 1,500 employees, utilizing its Bitcoin holdings deliberately to “create shareholder value.”
Previously known as MicroStrategy, Strategy transitioned into an enterprise software company that began purchasing and storing bitcoin back in 2020. Initially acquired to safeguard shareholder interests, the firm has since ramped up its purchases aggressively, establishing itself as the premier corporate holder of the cryptocurrency with 845,050 bitcoins valued at $65.8 billion based on current market rates.
Through Strategy’s Nasdaq-traded stock (MSTR), investors gain access to amplified exposure toward bitcoin price movements.
When Monday’s trading session concluded, MSTR shares were up 4%. The stock remains down 15% for the year.
Frequently Asked Questions
Why is Strategy opposing MSCI’s proposal?
Strategy opposes the proposal because it labels the company a “non-operating company” to exclude it from Global Investable Market Indexes, which Strategy calls discriminatory and flawed.
What are MSCI’s proposed index rules?
MSCI consulted on a plan to define “non-operating companies” and make them ineligible for its Global Investable Market Indexes, following a 2025 proposal to exclude firms with heavy digital asset holdings.
How much Bitcoin does Strategy hold?
Strategy holds 845,050 bitcoins, valued at $65.8 billion at current prices, making it the largest corporate holder of the cryptocurrency.
How does Strategy classify its Bitcoin operations?
Strategy reports its Bitcoin business as an operating segment and classifies its Bitcoin gains and losses as operating expenses.
