Strategy Slams MSCI's Proposed Index Test as a 'Pretext' to Exclude Bitcoin Companies

Strategy Inc. (NASDAQ:MSTR) has fired back at MSCI's proposed index eligibility test, calling it a 'pretext' to exclude Bitcoin treasury companies. The company published a formal response to MSCI's consultation, signed by Executive Chairman Michael Saylor and CEO Phong Le.

The proposal would flag companies whose core business assets fall below 50% of total assets and apply five financial ratio screens. Failing four of the five results in index exclusion.

Strategy argues that MSCI's 'operating' and 'non-operating' classifications have no basis in US GAAP, IFRS, or any recognized legal framework. The company reports its Bitcoin (CRYPTO: BTC) treasury operations as a separate operating segment under US GAAP, consistent with discussions with SEC staff.

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.