Strategy Inc Challenges MSCI's Bitcoin Index Exclusion Proposal

Strategy Inc., led by Executive Chairman Michael Saylor, is challenging an MSCI proposal that could remove it from global equity indexes. The company argues that the screening methodology misclassifies its bitcoin treasury operations and targets digital asset treasury firms unfairly.

The proposed test, which will be announced on Oct 16, would exclude companies whose operating assets exceed 50% of total assets. Strategy rejects MSCI's apparent classification of bitcoin as a non-operating asset, saying that it is not an investment fund but rather an operating business with approximately $23.93 billion in market capitalization.

Strategy reports its bitcoin treasury operations as a separate operating segment and records bitcoin gains and losses within operating expenses. The company maintains an enterprise analytics software business with nearly 1,500 employees and over $500 million in annual revenue.