Strategy Warns Against MSCI Exclusion of Bitcoin Treasuries

Strategy, formerly known as MicroStrategy, warns MSCI that excluding Bitcoin treasuries from its indexes could harm U.S. economic and national security interests amid ongoing consultations.

Exclusion could significantly impact capital flows and institutional involvement in Bitcoin, affecting both Strategy’s stock and broader U.S. digital asset industry competitiveness.

Strategy, formerly known as MicroStrategy, is challenging MSCI’s consideration to exclude cryptocurrency treasury companies from its indexes, emphasizing possible negative impacts on U.S. interests.

This development could lead to massive capital outflows, potentially undermining both the U.S. digital asset industry and national security interests.

Strategy Opposes MSCI’s Bitcoin Index Exclusion Plan

Strategy, formerly MicroStrategy, holds the largest corporate Bitcoin treasury and has raised concerns regarding MSCI’s index exclusion for digital asset companies. The response follows MSCI’s consultation about companies with more than 50% digital assets.

Potential $2.8 Billion Stock Outflows Forecasted

Strategy forecasts substantial consequences, estimating forced stock outflows up to $2.8 billion if excluded. This financial impact could deter institutional investors from engaging with Bitcoin-treasury companies.

Such exclusion contradicts U.S. pro-innovation policies and undermines national security objectives, as stated by Strategy. Unlike other concentrated sectors, Bitcoin-focused firms risk being disproportionately affected, raising questions about policy fairness and consistency.

MSCI’s Policy Shift Challenges Historical Index Neutrality

Historically, MSCI has maintained index neutrality without excluding sectors like gold or real estate. Strategy argues this discrimination contrasts with past practices, setting a concerning precedent for digital assets.

Financial experts indicate that altering index policies might decrease U.S. competitiveness in digital asset markets. Considering previous index neutrality, a change could destabilize established market dynamics and affect corporate Bitcoin reserves.