Strategy Inc. Urges MSCI to Scrap Digital Asset Index Rule

Strategy Inc., the enterprise analytics software company formerly known as MicroStrategy, has formally urged index provider MSCI to abandon a proposed rule that would exclude firms with digital asset holdings comprising 50 percent or more of their total assets from its Global Investable Market Indexes.

In a letter to MSCI's Equity Index Committee, signed by Executive Chairman Michael Saylor and Chief Executive Officer Phong Le, Strategy described the proposal as arbitrary and discriminatory. The company, which holds significant Bitcoin reserves as part of its corporate treasury, argued that digital asset treasury companies, or DATs, operate as active businesses rather than passive investment funds. Strategy emphasized its use of Bitcoin to develop financial products, such as Bitcoin-backed credit instruments and securities, which provide investors with exposure to its management strategies and software operations. "Investors buy the company's strategy and management, not a static wrapper for Bitcoin," the letter stated.

The proposal, currently under public consultation, aims to standardize eligibility for MSCI's benchmarks by treating substantial digital asset holdings as akin...