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Strategy has formally opposed MSCI's proposed screening rules for companies with large non-operating asset holdings, arguing that the methodology unfairly targets digital asset treasury firms and could push companies including Strategy out of major global equity indexes.
In a Monday letter signed by Executive Chairman Michael Saylor and CEO Phong Le, Strategy called MSCI's proposal "discriminatory, arbitrary, and misguided" and asked the index provider to withdraw it. "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," Strategy wrote.
MSCI Proposal Targets Digital Asset Treasury Firms
MSCI opened its latest consultation in August, proposing a new method for identifying companies whose balance sheets contain large amounts of assets it considers non-operating. Companies whose operating assets account for less than 50% of total assets would face five additional financial-ratio tests under the proposed system. Triggering at least four of the five conditions could classify a company as non-operating and make it ineligible for the MSCI Global Investable Market Indexes.
The methodology examines operating asset intensity, expenses, operating cash flow, fair value changes tied to assets considered non-operating and dependence on financing to accumulate those assets. Strategy argued that the proposal effectively revives MSCI's earlier attempt to address digital asset treasury companies through a different screening process.
MSCI considered a separate framework last year that could have removed companies with digital assets accounting for 50% or more of their total assets. Following industry opposition, the index provider kept crypto treasury firms in its indexes in January while it prepared a new review covering companies with substantial non-operating assets.
Simulation Puts Strategy and Metaplanet at Risk
A simulation based on May 2026 data identified Strategy, Metaplanet and U.K.-listed uranium investment company Yellow Cake as companies that would face deletion under the proposed methodology. The MSCI simulation identified Strategy with a free-float-adjusted market capitalization of $23.93 billion, while Yellow Cake stood at $1.81 billion and Metaplanet at $654 million.
SharpLink, Center Laboratories and Lydia Holding were placed on a watchlist in the simulation because MSCI proposes different treatment for existing constituents. Under the proposed methodology, current index members would need to fail the applicable screening test in two consecutive annual reviews before removal.
Strategy challenged the basis of the screening process, saying MSCI's use of "operating" and "non-operating" does not match established accounting definitions. The company said neither U.S. generally accepted accounting principles nor International Financial Reporting Standards provides the distinction MSCI proposes to use. Existing U.S. securities law does not provide an equivalent test either.
Bitcoin Is Central to Strategy's Objection
MSCI treats the cryptocurrency on Strategy's balance sheet as a non-operating asset, while Strategy reports its Bitcoin treasury as an operating segment. According to the company, gains and losses related to its Bitcoin holdings are recorded as operating expenses following discussions with the U.S. Securities and Exchange Commission. Strategy said MSCI would therefore be applying an index-level classification that differs from the accounting treatment used in its financial statements.
The company questioned why similar treatment would not apply to other businesses whose balance sheets contain large pools of assets. Its letter cited real estate investment trusts, timber businesses and energy infrastructure companies as examples of asset-heavy firms that could remain eligible under the proposed methodology. Strategy argued that the difference would concentrate the effects of the test on digital asset treasury firms even though MSCI has presented the proposal as a company-wide screening framework.
Strategy Wants MSCI to Define Its Asset Test
If MSCI proceeds with the proposal, Strategy asked the index provider to base any final methodology on recognized accounting or legal standards. The company wants the rules applied only to financial filings released after the methodology has been finalized, preventing companies from being assessed retrospectively against a classification that did not exist when earlier filings were prepared.
The current dispute follows months of uncertainty over how major index providers should treat companies that use their balance sheets to hold Bitcoin and other digital assets. When MSCI paused its earlier DATCO exclusion in January, Strategy shares rose as the immediate risk of removal from MSCI indexes eased. JPMorgan estimated at the time that exclusion from MSCI indexes alone could lead to roughly $2.8 billion in selling of Strategy shares, with potential outflows reaching $8.8 billion if other index providers followed. Read more about Strategy's Bitcoin acquisition strategy and STRC buyback program details.
