Strategy, which is the largest Bitcoin-treasury firm, provided feedback to MSCI, an indexing company on Wednesday, about a proposed policy change, that would prevent digital assets treasury businesses with 50% or greater in crypto holdings on their balance sheet from being included on the stock market index.
The digital asset treasury is a group of companies who can adjust their operations to suit the needs. letterThe article cited Strategy’s Bitcoin-backed Credit Instruments as an example.
It is important to note that the word “you” means “you”. proposed policy change The letter stated that the MSCI would be biased against cryptocurrency as an asset, rather than the index company being a neutral arbitrator.
Strategy reports that the MSCI index does not exclude any other type of business investing in a specific asset class. These include real estate investments trusts (REITs), oleo companies, and media portfolios. In the letter, it was stated:
“Many financial institutions primarily hold certain types of assets and then package and sell derivatives backed by those assets, like residential mortgage-backed securities.”
In the letter, it also stated that changes would be implemented. “undermines” The goal of US President Donald Trump to make the United States the global leader in crypto. Critics argue, however, that the inclusion of crypto-treasury firms in global indexes poses a number of risks.
Related: Strive calls on MSCI to rethink its ‘unworkable’ Bitcoin blacklist
The systemic and spill-over risks of crypto treasury firms are high.
The characteristics of crypto treasury firms are more like those of an investment fund than a company that produces goods or services. according MSCI is a stock market index.
MSCI stated that companies capitalizing on cryptocurrency lack uniform and clear valuation methods. This makes proper accounting difficult and could skew index values.
Strategy had 660 624 BTC in its account at the moment of writing. Stocks have lost more than 50% in value since last year. according Yahoo Finance is a great place to start.
BitcoinBTCIt is 15 % below the value it had at the beginning 2025. At that time, the asset was valued over $109,000. This shows the performance of the underlying equity.
It is important to note that the word “you” means “You”. high volatility of cryptocurrencies According to an expert, this could increase the volatility of indexes that track these companies, or even create correlation risk, in which the performance of the index would reflect the crypto market’s performance. paper Federal Reserve.
It is important to note that the word “you” means “you”. “common use” You can also find out more about the following: leverage by crypto traders Federal Reserve writes that volatility is amplified and crypto as an asset type becomes more fragile.
MSCI’s proposed policy, which is set to come into effect in January 2019, could cause treasury firms to sell their crypto assets to comply with the new criteria to be included on indexes, causing additional pressure to digital asset markets.
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Source: cointelegraph.com
