BPI Challenges MSCI's Operating-Assets Test for Global Benchmarks

The Bitcoin Policy Institute (BPI) has challenged MSCI's proposed operating-assets test for index eligibility, arguing that its broad scope could give the index provider wide discretion over which companies qualify for global benchmarks.

MSCI would assess a company's substantial operating assets and then apply five financial tests under the proposal. A simulation identified Strategy, Japan-listed Metaplanet, and uranium investment company Yellow Cake as potential deletions from the MSCI Global Investable Market Indexes.

The BPI argued that 'operating assets' is not a standard balance-sheet category under U.S. generally accepted accounting principles or International Financial Reporting Standards. It said the term leaves room for judgment in classifying cash, investments, projects under construction, and strategic holdings.