MSCI Considers Reclassifying BTC, ETH, and SOL Treasury Companies as Funds
- The MSCI is consulting on whether to classify treasury companies holding Bitcoin, Ethereum, and Solana as funds or trusts.
- Michael Saylor asserts that his company, Strategy, operates as a traditional business with a $500 million software segment and not as a fund or trust.
- Strategy has raised over $7.7 billion through five public offerings of digital credit securities this year, including a recent $704 million offering to acquire more Bitcoin.
- MSTR stock has declined nearly 2% today and over 11% in the past five days amid concerns of potential exclusion from MSCI indices.
- The MSCI’s decision is expected by January 15 and could impact other treasury companies like those associated with Ethereum and Solana.
Saylor emphasizes that Strategy’s operations differ from passive funds or trusts by actively creating and managing assets rather than merely holding them. The outcome of the MSCI’s classification could significantly affect how digital asset treasury companies are perceived in the financial market.
As MSTR stock trades around $174, concerns about MSCI classification continue to loom large for investors in these treasury models.(Source)
