Strategy asked MSCI to withdraw the proposal or apply changes only prospectively going forward.
- Strategy told MSCI that its new eligibility test is a repacked version of the old test it withdrew earlier this year.
- The new test would delist Strategy and Metaplanet from MSCI’s indices and add SharpLink to a “watchlist.”
- Strategy said it meets MSCI’s own test under GAAP, citing SEC talks and its latest 10-Q.
Michael Saylor’s Strategy (MSTR) told index provider Morgan Stanley Capital International (MSCI) that its latest proposal to exclude “non-operating” companies from its benchmarks was “fundamentally flawed,” the second time in less than a year the firm has pushed back against an MSCI effort to remove it from its indices.
The new eligibility test “simply re-packages” a proposal MSCI withdrew earlier this year “but reaches the same result,” Strategy, the largest corporate holder of Bitcoin (BTC), said in a letter on Monday to MSCI’s Equity Index Committee, calling it “a pretext” to target Bitcoin treasury companies.
The letter explained that MSCI’s methodology was based on undefined “operating” and “non-operating” classifications “that cannot be found in any relevant accounting standard,” and would immediately delist Strategy and Metaplanet from its indices, while adding Ethereum (ETH) treasury company SharpLink (SBET) to a new public “watchlist.”
“MSCI should withdraw the proposal. There is no need for MSCI to distort its indices and harm its reputation as a neutral, reliable index provider,” read the letter.
MSTR shares traded over 2% lower in pre-market trade. On Stocktwits, retail sentiment around MSTR remained in the ‘bullish’ zone, while chatter around it shifted to ‘normal’ from ‘high’ levels over the past day.
MSCI is one of the world’s largest index providers, and its benchmarks, including its Global Investable Market Index (GIMI), are widely used by asset managers and other institutional investors. Many funds are built to track MSCI’s indices, so removing a company can trigger automatic selling and a sharp drop in the stock price.
Strategy Says It Meets MSCI’s Own Test
Strategy said it already qualified as an operating company per U.S. accounting rules known as Generally Accepted Accounting Principles (GAAP), based on conversations with U.S. Securities and Exchange Commission (SEC) staff.
It added that its latest 10-Q reported Bitcoin gains and losses within operating expenses, which the company said should make it eligible under MSCI’s own screening criteria. The letter also said strategy constituted roughly 87% of the total “float-adjusted market capitalization at stake” across the six companies that would be affected by the MSCI proposal.
Strategy asked MSCI to withdraw the proposal outright, or, failing that, apply any changes only prospectively and publish a full record of the consultation.
A Repeat Fight
Strategy has previously defended its position on MSCI’s indices. Back in October 2025, when MSCI first proposed excluding firms with heavy exposure to equities, Saylor responded, saying at the time that “index classification doesn’t define us,” and pointing to Strategy’s roughly $500 million software business as evidence that it was a real company, and not a passive fund.
That proposal drew opposition from more than 250 organizations and 1,500 signatories, Strategy’s letter said, before MSCI decided not to exclude digital asset treasury (DAT) firms from its indexes, signaling it would open a ‘broader consultation on the treatment of non-operating companies generally.'”
Read also: Bitcoin Saw Its Best August Since 2017: Can $3.5B In ETF Inflows Help It Beat ‘Red September’?
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