Strategy Challenges MSCI Plan to Exclude Digital Asset Treasury Firms from Key Indexes
Strategy Inc., the world’s largest Bitcoin treasury firm, has submitted an in depth response to MSCI’s session on how to classify Digital Asset Treasury Companies (DATs).
MSCI has proposed excluding from its Global Investable Market Indexes any firm whose digital asset holdings characterize 50% or extra of whole belongings.
In a letter dated December 10, despatched by Executive Chairman Michael Saylor and CEO Phong Le, Strategy argues the transfer is “misguided” and would have “profoundly dangerous penalties” for capital markets, innovation, and U.S. management in digital belongings.
“DATs Are Operating Companies, Not Investment Funds”
The core of Strategy’s argument is that DATs like itself are working companies, not passive funding funds. Strategy stresses that it doesn’t merely sit on a Bitcoin hoard; as a substitute, it runs a Bitcoin-backed company treasury and capital markets program, issuing a variety of fairness and fixed-income devices that present traders with various levels of Bitcoin publicity.
It compares this mannequin to banks and insurers that seize a variety between financing prices and returns on underlying belongings.
The firm notes that many conventional corporations—equivalent to oil majors, REITs, timber firms and media teams—are additionally closely concentrated in a single asset sort, but will not be handled as funds or excluded from indices. Singling out digital-asset-heavy steadiness sheets, it says, can be discriminatory and inconsistent.
Strategy Warns of Index Instability and Policy Bias
Strategy contends that MSCI’s proposed 50% digital asset threshold is each arbitrary and unworkable. Given crypto value volatility and divergent accounting requirements (GAAP vs. IFRS), firms might “whipsaw on and off” MSCI indices as market values fluctuate, undermining index stability and investor confidence.
The letter additionally accuses MSCI of improperly injecting coverage judgments into index building, departing from its said function as a impartial supplier of “exhaustive” benchmarks that mirror market evolution quite than deeming sure enterprise fashions “good or unhealthy.”
Excluding DATs, Strategy argues, would structurally under-represent a fast-growing phase of the financial system and name into query the neutrality of MSCI’s indices.
Conflict with U.S. Digital Asset Strategy and Call for Extended Review
Strategy additional argues that the proposal conflicts with the present U.S. administration’s pro-innovation digital asset agenda, together with initiatives like a Strategic Bitcoin Reserve and efforts to broaden entry to digital belongings in retirement plans.
Excluding DATs from main benchmarks, the corporate says, would choke off entry to passive capital, chill innovation, and weaken U.S. competitiveness in a strategically essential sector.
Concluding, Strategy urges MSCI to reject the proposal outright or, at minimal, prolong the session and undertake an extended, extra deliberate evaluation as digital asset treasury fashions proceed to mature. “The wiser course,” the letter states, “is for MSCI to stay impartial and let the markets determine the course of DATs.”
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