Strategy Slams MSCI Index Rule as Pretext to Exclude BTC Treasury Companies

Strategy Inc., a NASDAQ-listed company, has publicly criticized MSCI's proposed index eligibility test, calling it a 'pretext' to exclude Bitcoin treasury companies. In a formal response to MSCI's consultation, Strategy's Executive Chairman Michael Saylor and CEO Phong Le argue that the test is a repackaged version of MSCI's own withdrawn 2025 proposal.

The company reports its Bitcoin (BTC) treasury operations as a separate operating segment under US GAAP, consistent with discussions with SEC staff. According to Strategy, this does not trigger four of MSCI's five flags in the test.

MSCI's proposed non-operating company screen has been criticized for lacking a basis in recognized legal frameworks such as US GAAP and IFRS. Strategy warns that injecting MSCI's own policy judgments into index construction creates fiduciary concerns for institutions tracking its benchmarks and raises questions under EU benchmark rules and IOSCO transparency principles.

The proposal affects roughly 87% of the float-adjusted market value across six identified companies, with Strategy alone representing a significant portion. The company sees the precedent as a bigger concern than the immediate effect, despite funds tracking MSCI's Global Investable Market Indexes holding only 3.1% of Strategy's basic shares outstanding.