Strategy Opposes MSCI’s Proposal to Exclude Digital Asset Companies
- Strategy (MSTR) has formally responded to MSCI’s proposal to exclude companies with digital asset holdings exceeding 50% of total assets from its Global Investable Market Indexes.
- Executive Chairman Michael Saylor stated that digital asset treasury companies (DATs) utilize digital assets as productive capital rather than merely tracking price movements.
- The company claims the proposed threshold is arbitrary, noting that firms with concentrated reserves in sectors like oil or real estate remain eligible for MSCI indices.
- If removed from MSCI indexes, Strategy could face significant passive capital outflows, potentially amounting to billions.
- Strategy argues that excluding DATs could hinder American competitiveness and slow financial technology innovation.
In its letter, Strategy emphasized that it operates as a conventional business and not an investment fund, highlighting its long history in software development and corporate treasury management. The firm urged MSCI to reconsider the implications of its proposal on the digital asset sector.
With potential losses in passive capital flows at stake, Strategy’s response underscores the critical role of digital assets in modern business operations.(Source)
