Bitcoin For Corporations, in collaboration with its members companies. formally challenged MSCI has proposed a new rule which would exempt companies from MSCI Global Investable market Indexes if they have digital assets that represent more than 50% of their total assets.
The new rule will apply to businesses whose main business activity is digital assets treasury.
BFC says the proposal is a misclassification of operating companies, as it prioritizes balance-sheet assets over business operations.
“MSCI has long defined companies by what they do, not by what they hold. This proposal abandons that principle for a single asset class,” George Mekhail said George Mekhail. “A shareholder-approved treasury decision shouldn’t override that reality.”
This coalition found three major structural flaws in the proposed legislation. The coalition identified three structural issues with the proposal. The second is that it treats digital assets differently from other asset types.
The index is tied to the volatile price of the market, causing unpredictable changes in membership.
BFC warns that this proposal may lead to increased capital costs and volatility, as well as passive fund withdrawals. These are all factors unrelated to the performance of companies.
The group asked MSCI not to raise the threshold. It also encouraged them to maintain an asset class neutrality and operate on a classification based on operations.
Strive echos the sentiment
Vivek Ramaswamy’s Strive Asset Management also asked MSCI in a formal letter last week that it reconsider the proposal of excluding companies from benchmarks with Bitcoin holdings above 50%.
Strive sent a note to Henry Fernandez the CEO of MSCI. warned The rule may produce inconsistencies due to the differences between U.S. GAAP accounting and IFRS.
Strive, with more than 7,500 BTC as its 14th largest corporate bitcoin owner, has argued the 50% threshold to be too high. “unjustified, overbroad, and unworkable.” They also pointed out that many bitcoin-treasury businesses are real companies with actual operations in areas such as AI, cloud computing, and structured finance.
It was noted that gold and oil miners, as well as energy companies who have vast reserves of petroleum, are included in indexes.
In addition, the firm cited that market volatility and exposure to derivatives as well as accounting differences could be factors in making index inclusion unpredictable.
Strive warns that the strictness of rules may drive innovations abroad and give international companies a competitive edge.
MSCI will announce its decision by January 15, 2026. Strive’s intervention supports the call of the wider industry for operations-based classifying, asset-class-neutrality, and fairness to companies who hold bitcoins as a part of their Treasury strategy.
MSCI can exclude Strategy
Strategy is a software and tech company known for its Bitcoin Reserve Strategy. Michael Saylor and Strategy recently pushed MSCI troubles: How to combat them could exclude Analysts warn that the removal of a company’s stock from major indices could trigger passive withdrawals worth billions.
Saylor stressed Strategy was an operational business, not a mutual fund or holding. It has a $500-million software division as well as a $7.7-billion Bitcoin credit program.
He highlighted Stretch ($STRC), which is a Bitcoin-backed financial instrument. Strategy, he said, actively structures and operates its products and does not passively hold assets.
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Source: bitcoinmagazine.com
