Michael Saylor, Executive Chairman of Strategy (formerly MicroStrategy), has sent a formal letter to the MSCI Equity Index Committee, describing the index provider’s proposal as “misguided.”
The global index provider MSCI is considering excluding companies with at least 50 percent of their total balance sheet in digital assets from the MSCI Global Investable Market Indexes. Strategy, the world’s largest publicly listed Bitcoin treasury company with 660'624 BTC worth around 60 billion US dollars, would be the most affected entity. MSCI’s consultation period began on 10 October 2025 and runs until 31 December 2025. A final decision is expected on 15 January 2026, with potential implementation in February. JPMorgan estimates passive outflows of approximately 2.8 billion US dollars from Strategy shares if the company is removed from MSCI indexes. Roughly 18.3 trillion US dollars in assets are benchmarked to MSCI indexes.
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Strategy criticizes threshold as discriminatory
In his letter, Saylor argues that Digital Asset Treasury Companies such as Strategy are operational business entities. They deploy digital assets as productive capital – not as passive vehicles tracking price developments. Nevertheless, the company describes the proposed 50 percent threshold as “discriminatory, arbitrary, and unworkable.”
Strategy emphasizes that MSCI has historically classified companies based on their activities – the businesses that generate revenue and earnings. The new proposal, however, deviates from this principle. Here, a single balance sheet item could override operational reality. George Mekhail, Managing Director at Bitcoin For Corporations, put it clearly: “MSCI has long defined companies by what they do, not by what they hold. This proposal abandons that principle for a single asset class.”
The company highlights what it calls a double standard: traditional firms – such as oil majors, REITs, timber companies, or media groups – also rely heavily on a single asset type. Yet they are not treated as funds nor excluded from indexes. Consequently, this unequal treatment affects only Bitcoin-oriented companies.
Industry-wide criticism of index volatility
Another point of criticism concerns the practical effects of the rule. The 50 percent threshold is tied to the market price of a volatile asset. This would make index membership inherently unstable. A company could breach the inclusion or exclusion threshold solely due to price movements in Bitcoin – without any operational change.
Bitcoin For Corporations (BFC), an advocacy group for companies with Bitcoin treasury strategies, launched a formal industry initiative against the MSCI proposal on 8 December 2025. The coalition coordinates responses from affected publicly traded companies and warns of a potential reclassification or removal of up to 39 firms from indexes.
Conflict with US innovation policy
Strategy argues that MSCI’s proposal would slow investment into the growing digital asset industry. This would directly contradict the innovation-friendly policy of the current US administration. Therefore, the company urges MSCI to give the digital asset sector time to mature before implementing comprehensive rules.
If MSCI insists on special treatment for Digital-Asset-Treasury companies, the index provider must conduct further consultations with the industry. Strategy stresses that the current consultation period is insufficient to evaluate the complex implications of the proposed changes.
The decision carries significant implications for the institutional acceptance of Bitcoin as a treasury asset. If MSCI implements the proposal, it could discourage other publicly traded firms from holding Bitcoin on their balance sheets. A rejection, however, would signal that traditional financial market infrastructure recognizes Bitcoin as a legitimate corporate asset.
Saylor’s position and voting power
Michael Saylor continues to control 42 percent of Strategy’s voting shares, giving him substantial influence over the company’s strategic direction. This control is based on Class B common stock, which carries a ten-to-one voting ratio compared to Class A shares. Saylor held 51.7 percent of the voting power in October. However, he lost majority control due to numerous equity and debt issuances used to finance additional Bitcoin acquisitions.
Between 1 and 7 December 2025, Strategy purchased another 10'624 BTC for roughly 963 million US dollars. The average purchase price was 90'615 US dollars per Bitcoin. The company’s total holdings now amount to 660'624 BTC, acquired at an average cost of 74'696 US dollars per Bitcoin. Total acquisition costs, including fees, amount to approximately 49.4 billion US dollars.
The company rebranded from MicroStrategy to Strategy in February 2025 and positions itself as the leading Bitcoin treasury company. Strategy has also announced a US-dollar reserve of 1.44 billion US dollars to cover dividend payments on preferred shares and interest payments on existing debt. While its software operations remain in place, they represent only a small fraction of the company’s value. Bitcoin now accounts for more than 85 percent of the enterprise value.
