Strategy’s strong objection to MSCI’s plan to exclude companies with large digital asset reserves has intensified the debate across the crypto ecosystem ahead of the upcoming decision.
MSCI’s consideration of removing companies that hold more than half of their total assets in digital assets from global investment indexes has sparked wide discussion. At the center of the issue, Strategy sent an official letter arguing that the proposal is unworkable and could create significant market consequences.
The company emphasized that firms with substantial digital asset reserves are not comparable to fund structures and are instead operational businesses with active revenue streams. Strategy highlighted that it does more than hold bitcoin, pointing to its credit products, corporate treasury operations, and expanding software business, noting that investors view its stock as exposure to company strategy rather than a simple price proxy.
One of the most impactful concerns is related to passive capital flows. According to JPMorgan estimates, Strategy alone could face between $2.8 billion and $8.8 billion in passive outflows, a scenario that could materially affect its market value and index weighting.
Strategy also criticized MSCI’s fifty percent digital asset threshold as arbitrary, noting that many companies with heavy reserves in real estate, energy, or commodities remain in indexes without issue. The firm added that accounting differences between IFRS and US GAAP could cause two companies with identical bitcoin reserves to be classified differently, creating constant index rebalancing.
The company further argued that the proposal conflicts with the United States’ digital asset-friendly policy direction, which emphasizes technological neutrality, broader accessibility, and institutional adoption. The final decision is expected on January 15 and is considered pivotal not only for Strategy but for all companies holding digital assets on their balance sheets.
