Strategy opposes MSCI plan to exclude MSTR from index, calls move discriminatory

Strategy challenges MSCI’s proposed exclusion

In a letter sent to MSCI, Strategy founder Michael Saylor and CEO Phong Le stated that the index provider was discriminating against businesses involved in digital assets. The executives argued that MSCI’s latest initiative targets firms like Strategy under the pretense of redefining “non-operating companies” and excluding them from key stock market indexes viewed by major institutional investors.

Earlier in June, MSCI started consulting on a possible revision of its index rules that would make companies categorized as “non-operating” ineligible for inclusion. Such a revision would affect firms with significant digital asset holdings, including Strategy, whose large Bitcoin treasury makes it a focal point of the change.

Strategy described the proposal as discriminatory, arbitrary, and lacking clear justification, stating in its letter that, “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.”

Arguments against MSCI’s classification

Strategy argued that MSCI was introducing unprecedented definitions to classify its Bitcoin holdings as “non-operating.” The company emphasized that it includes Bitcoin as part of its operating segments and records related gains and losses as operating expenses. It further claimed that the methodology for identifying “non-operating companies” lacked transparency and appeared intended to unfairly single out digital asset treasury firms.

The company also noted its status as an operating entity, employing 1,500 personnel worldwide. According to Strategy, its active management of a substantial Bitcoin reserve is aimed at delivering long-term shareholder value rather than functioning as a passive investment.

Strategy asserted that, “MSCI’s continued effort to discriminate against digital assets is misguided and calls into question MSCI’s neutrality and reliability.”

MSCI’s latest proposal follows a similar initiative put forward in 2025, which aimed to exclude companies whose digital asset holdings made up at least half of their total assets. That 2025 proposal was ultimately withdrawn after opposition from market participants.

Background on Strategy and its Bitcoin holdings

Founded originally as MicroStrategy, Strategy pivoted in 2020 from enterprise software to primarily holding and acquiring Bitcoin. The company is now the world’s largest corporate holder of the cryptocurrency, with 845,050 bitcoins valued at $65.8 billion at current prices. This significant position gives across-the-board exposure to Bitcoin for investors through the company’s Nasdaq-listed stock, MSTR.

Mini dictionary: MSCI, or Morgan Stanley Capital International, is a leading provider of global equity indexes, widely used by investors to benchmark and construct portfolios. Its index inclusion decisions can affect investment flows and company valuations.

On Monday, MSTR closed 4% higher, despite being down 15% since the beginning of the year. The ongoing dispute over index inclusion highlights the challenges digital asset companies face in gaining institutional acceptance and underscores the potential influence of index providers on capital markets.