Strategy Challenges MSCI's Proposed Index Exclusion Rules
Michael Saylor's Strategy has pushed back against MSCI's proposed index exclusion rules in a letter dated August 31. The company argues that it does not fail the index provider's screen, citing its quarterly filing which shows operating expenses exceeding the 5% threshold.
The proposal by MSCI would delete three companies from an index of thousands and place three more on a public watchlist. However, Strategy claims that the terms 'operating' and 'non-operating' do not appear in any US GAAP or IFRS standard, and no accounting framework uses the five ratios proposed by MSCI.
The company notes that it has reported Bitcoin fair-value changes within operating expenses in every reporting period since adopting fair-value accounting on January 1, 2025. In its June 30, 2026 filing, Strategy's total operating expenses were $22.97 billion, with $22.77 billion attributed to the fair value of Bitcoin.
MSCI is accepting feedback through September 30, and expects to announce results on or before October 16. If MSCI proceeds, Strategy asks that the test apply only to filings issued after implementation, and that the consultation record be published with reasoned responses.