Strive Urges MSCI to Reconsider Bitcoin Exclusion Proposal
- Strive, the 14th-largest publicly-listed Bitcoin treasury firm, has sent a letter to MSCI’s chairman arguing against the exclusion of major Bitcoin holding companies from its indexes.
- The proposed exclusion could result in significant losses for firms like Strategy, which could face up to $2.8 billion in losses if removed from the MSCI World Index.
- Strive CEO Matt Cole highlighted that large Bitcoin miners are diversifying into AI infrastructure, positioning them as key players in both sectors.
- Cole criticized the practical implications of a proposed threshold where companies with over 50% digital asset holdings would be excluded, suggesting it would lead to increased management costs and tracking errors.
- Instead of a blanket exclusion, Strive proposes an “ex-digital asset treasury” version of MSCI’s indexes for investors wishing to avoid these companies.
The potential exclusion of firms with significant Bitcoin holdings from MSCI indexes raises concerns about reduced exposure for passive investors and impacts on structured finance linked to Bitcoin returns.
Strive’s intervention emphasizes the importance of maintaining access for firms like Strategy that are deeply integrated into the evolving financial landscape, particularly as they navigate potential losses exceeding $2 billion due to index changes.
