MicroStrategy Calls Morgan Stanley’s Index Plan “Discriminatory” as Consultation Continues
MicroStrategy pushed again in opposition to Morgan Stanley Capital International’s (MSCI) proposal to take away Bitcoin-heavy firms from main fairness indexes, arguing the rule wrongly handled them like funding funds.
The response got here after JPMorgan warned that the transfer may set off billions in compelled promoting, placing Strategy on the middle of a broader debate over how Bitcoin publicity needs to be managed in public markets.
Strategy Defends Its Operating Model
Strategy (previously MicroStrategy) issued a press release on Wednesday arguing that MSCI’s proposal fundamentally misrepresented how Bitcoin-heavy firms operated.
In the 12-page letter signed by Executive Chairman Michael Saylor and President Phong Le, the agency maintained that it was an working enterprise that used its Bitcoin reserves to difficulty credit score devices and lift capital.
It argued that this strategy differed basically from a passive car designed to trace a single asset.
“We urge MSCI to reject the proposal. It rests on a broad mischaracterization of DATs and would impose arbitrary, unworkable situations that may stifle innovation, injury the status of MSCI’s indices, and battle with nationwide priorities,” it learn.
Strategy additionally said that the proposed 50% digital-asset threshold was discriminatory. It argued that the rule singled it out whereas leaving equally concentrated sectors, such as oil or actual property, untouched.
Consultation Puts Bitcoin Treasuries at Risk
The controversy started in October, when MSCI launched a session on methods to classify digital asset treasuries (DATs) inside its index methodology. The proposed 50% threshold instantly put Strategy and other Bitcoin-focused firms underneath assessment.
In November, a JPMorgan evaluation estimated that Strategy may face roughly $2.8 billion in forced-selling strain if MSCI had been to take away it alone, and potentially up to $8–9 billion if different suppliers adopted the identical strategy.
These projections fueled public concern and renewed consideration on how Bitcoin-treasury companies needs to be labeled throughout the index ecosystem.
For Strategy, the implications prolonged past index eligibility.
Exclusion may scale back liquidity and lift the corporate’s value of capital. It may additionally slim the position of company treasuries as a pathway for buyers in search of oblique Bitcoin publicity.
For buyers extra broadly, the episode underscored a structural query about whether or not Bitcoin publicity ought to primarily reside inside regulated exchange-traded funds or live on by publicly traded firms that maintain digital property on their stability sheets.
MSCI’s session stays open by December 31, with market individuals intently watching as the index supplier weighs its remaining determination.
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