Strategy Opposes MSCI Proposal to Exclude Digital Asset Treasury Companies from Global Indices
Strategy has formally opposed MSCI's proposal to exclude companies with large digital asset holdings from its global equity indexes. MSCI's proposal would remove companies whose digital asset holdings constitute 50% or more of total assets from the MSCI Global Investable Market Indexes. In a letter led by Executive Chairman Michael Saylor, Strategy argues that digital asset treasury companies (DATs), including itself, are operating businesses that use digital assets as productive capital and should remain eligible for benchmark inclusion.
The firm contends that the 50% threshold is arbitrary, unworkable, and poses risks to innovation and U.S. competitiveness. They list five reasons why DATs differ from investment funds: they are operating companies without fund or exchange-traded product structures or obligations, are not investment funds under applicable laws, lack fund-like tax treatment, and have a longstanding history as operating software businesses. MSCI's proposal would create different treatment for digital asset–backed companies, while companies in sectors with concentrated reserves such as oil, real estate, timber, and utilities remain eligible.
Strategy warns that excluding DATs would effectively inject policy views into index construction during a time when federal policies are shifting toward supporting digital asset innovation. They also highlight the risk of triggering large passive capital outflows that could harm American competitiveness and fintech expansion. Should MSCI proceed with differentiating DATs, Strategy has urged the firm to extend the consultation period and provide a more detailed rationale for any changes.
