Strategy Challenges MSCI Plan to Exclude Digital Asset Treasury Firms from Key Indexes

Core Argument - Strategy Inc. argues that the MSCI's proposal to exclude companies with over 50% digital asset holdings from its Global Investable Market Indexes is misguided and could harm capital markets, innovation, and U.S. leadership in digital assets [2][6] Company Classification - Strategy emphasizes that Digital Asset Treasury Companies (DATs) are operating businesses rather than passive investment funds, highlighting its active management of a Bitcoin-backed corporate treasury and capital markets program [3][4] Comparison with Traditional Firms - The company compares its model to traditional firms like banks and insurers that are concentrated in a single asset type, arguing that excluding DATs would be discriminatory and inconsistent with how other asset-heavy companies are treated [4] Concerns about Index Stability - Strategy warns that MSCI's proposed 50% digital asset threshold is arbitrary and could lead to instability in indices due to the volatility of crypto prices and differing accounting standards, which may undermine investor confidence [5] Policy Implications - The letter accuses MSCI of injecting policy judgments into index construction, which deviates from its role as a neutral benchmark provider, and argues that excluding DATs would under-represent a rapidly growing segment of the economy [6] Alignment with U.S. Digital Asset Strategy - Strategy contends that the proposal conflicts with the U.S. administration's pro-innovation digital asset agenda, which includes initiatives like a Strategic Bitcoin Reserve and efforts to enhance access to digital assets in retirement plans [7]