Strive, Nasdaq’s 14th largest Bitcoin Treasury Firm, has called on MSCI to reconsider the exclusion of large Bitcoin Holding Companies from their indexes.
It is not a letter Henry Fernandez. Chairman and CEO at MSCI. Strive According to the argument, excluding firms whose digital asset assets comprised more than 50 percent of their total assets will reduce passive investors exposure to growing sectors. It would also fail to capture all companies that they intend to.
Losing a spot in MSCI indexes could be a significant blow to digital asset treasury firms. JPMorgan analyst had warned Strategy, a Bitcoin-treasury company listed on the MSCI World Index could lose $2.8billion if MSCI moves ahead The proposal is a good idea.
Michael Saylor is the Strategy Chair at the Company. is in communication Contact the index provider to resolve the problem.
Strive CEO: Large Bitcoin investors are leading AI.
Matt Cole, CEO of Strive, argued that the major Bitcoin miners such as MARA Holdings, Riot Platforms and Hut 8 — all potential firms in the exclusion list — are rapidly diversifying their data centers to provide power and infrastructure for AI computing.
“Many analysts argue that the AI race is increasingly limited by access to power, not semiconductors. Bitcoin miners are ideally positioned to meet this rising demand,” He said.
“But even as AI revenue comes in, their Bitcoin will remain, and your exclusion would too, curtailing client participation in the fastest-growing part of the global economy.”
Bitcoin Structured Finance is Growing
Exclusions would cut off the exclusion. companies like Strategy Cole argued that Metaplanet and JP Morgan offer investors similar products to structured notes tied to Bitcoin returns offered by the likes JP Morgan Morgan Stanley, Goldman Sachs and Morgan Stanley.
“Bitcoin structured finance is as real a business for us as it is for JPMorgan. In fact, we, like other Bitcoin companies, have been open about our intent to make this our core vertical. It would be asymmetric for us to compete against traditional financiers, weighed down by a higher cost of capital from passive index providers’ penalties on the very Bitcoin enabling our offerings.”
It is impossible to meet the 50% Bitcoin threshold
Cole stated that this proposal would not be feasible, since tying inclusion in the index with a volatile asset It would mean that companies would “flicker” The index is constantly changing, increasing management costs and tracking error.
As companies acquire digital assets via various instruments, it is also important to measure when they reach 50%.
Related: Strategy’s Michael Saylor on potential MSCI exclusion: ‘We’re engaging’
“The question is not theoretical. Trump Media & Technology Group Corp., holder of the tenth-largest public Bitcoin treasury, did not appear on your preliminary exclusion list because its spot holdings comprised just under 50% of total assets,” Cole is a member of the Cole family.
“Yet Trump Media is not there simply because it is the first large treasury to seek substantial digital asset exposure through derivatives and ETFs.”
Strive has encouraged the MSCI, instead of an exclusion that is broad in scope, to create an “ex-digital asset treasury” Version for existing indexes.
“Asset owners that wish to avoid these companies could select those benchmarks, while others could continue to use the standard indices that most closely represent the full investable equity universe.”
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Source: cointelegraph.com
