Strategy, formerly known as MicroStrategy, has issued an official statement strongly opposing the regulatory changes proposed by Morgan Stanley Capital International. In a letter signed by Michael Saylor and President Phong Le, MicroStrategy rejects MSCI proposal calling it discriminatory and warning that it misunderstands the operational nature of companies with Bitcoin reserves. Executives maintain that the measure unfairly treats operating companies as if they were passive investment funds.
In a detailed 12-page letter, the board argued that the company is a legitimate operating business that uses its reserves to issue credit and raise productive capital. The firm contends that the proposed 50% threshold for digital assets is an arbitrary measure that does not apply to other concentrated sectors such as oil or real estate. Furthermore, they urged the index provider to dismiss a rule that would stifle financial innovation and damage the reputation of the capital market.
This forceful response comes after JPMorgan warned of the serious financial consequences that such an exclusion could entail for the general ecosystem. According to the bank’s estimates, removing the company from major indexes could trigger billions in forced selling pressure, affecting share price stability. Consequently, Strategy’s defense focuses on protecting not only its interests but the viability of modern corporate treasuries.
Could this decision trigger a liquidity crisis in the market?
The controversy stems from a consultation launched in October regarding the classification of digital asset treasuries, which put several firms under immediate review. JPMorgan’s analysis warned that exclusion could provoke up to $9 billion in forced selling if other providers follow MSCI’s lead. This situation has ignited a critical debate on whether Bitcoin exposure should be limited exclusively to regulated exchange-traded funds or allowed on corporate balance sheets.
For Strategy, the consequences of potential exclusion extend far beyond simple index eligibility, directly affecting its liquidity and raising its cost of capital. The measure could severely restrict the role of corporate treasuries as a legitimate pathway for investors to gain indirect exposure to digital assets. This raises profound structural questions about how public markets must adapt to the rapid evolution of financial reserve strategies in the digital age.
Is Bitcoin a valid asset for modern corporate balance sheets?
Moreover, the debate underscores a fundamental question about the neutrality and consistency that global index standards must maintain in the face of innovation. The company insists that its $500 million software business model, combined with its treasury strategy, differs fundamentally from a passive investment vehicle. Therefore, excluding these enterprises would artificially limit investor options and distort the true representation of the current corporate economy.
MSCI’s consultation will remain open until December 31, keeping market participants on edge while the provider weighs its final decision on the matter. If approved, the rule could redefine the landscape for pro-crypto companies, forcing a reevaluation of investment strategies globally. For now, the industry waits to see if the arguments presented will succeed in preserving the inclusion of these pioneering firms in the world’s key financial indexes.
