Key Takeaways:
Strategy has formally challenged MSCI's proposed non-operating company screen, arguing the index provider's own 2022 defense to the SEC contradicts a methodology that could eject the Bitcoin treasury firm from global equity indexes. The company filed its response letter on Aug. 31, signed by Executive Chairman Michael Saylor and CEO Phong Le.
"The proposal, like the 2025 proposal that MSCI withdrew, is discriminatory, arbitrary, and misguided," Strategy wrote. "If adopted, the proposal would have no meaningful impact on Strategy's business, but it would profoundly harm MSCI's reputation as a reliable and neutral index provider."
MSCI opened the consultation on Aug. 3, proposing a core screen and five financial ratios to identify "non-operating companies" whose operating assets fall below 50 percent of total assets. Triggering four of five conditions would make a company ineligible for MSCI Global Investable Market Indexes. A simulation based on May 2026 data flagged Strategy with a float-adjusted market capitalization of $23.93 billion — about 86.9 percent of the $27.55 billion total across six companies facing initial deletion or watchlisting. Metaplanet ($654 million) and Yellow Cake ($1.81 billion) were also identified.
Strategy's central argument turns on MSCI's 2022 comment letter to the SEC, when the index provider told the agency it "express[es] no opinion or view as to whether any market, company, strategy or investment is good or bad." Strategy says the proposed screen forces MSCI to judge whether Bitcoin belongs inside an operating business — a classification that neither GAAP nor IFRS defines. The company's latest 10-Q reports two operating segments, Software and Bitcoin, with the Bitcoin segment covering treasury operations, acquisitions, capital markets, and capital management.
MSCI's own 10-K acknowledges that adviser-style obligations could increase costs and complexity across its operations, a risk Strategy says the proposed methodology moves closer to. The SEC's 2022 inquiry into whether index providers could fall under the Investment Advisers Act remains open, and no determination has been issued on MSCI's current proposal.
Strategy also asked MSCI to publish more of the consultation record, identify which companies would trigger the screen, and place a legal hold on documents connected to the methodology's creation. The company has announced no litigation.
MSCI is accepting feedback through Sept. 30 and expects to announce its decision on or before Oct. 16, with implementation proposed for the November 2026 Index Review. If MSCI proceeds unchanged, Strategy could face deletion or watchlist treatment, forcing index-linked portfolios to adjust MSTR holdings. JPMorgan previously estimated that exclusion from MSCI indexes alone could trigger roughly $2.8 billion in selling of Strategy shares under the earlier crypto-specific proposal.
Strategy shares gained 4.42 percent on Monday to close at $132.94. The company also disclosed the purchase of 4,603 BTC at an average price of $80,318 per coin during the prior week.
This article is for informational purposes only and does not constitute investment advice.
