Strategy responds to MSCI letter, makes case for index inclusion

Strategy, the largest Bitcoin treasury company, formally responded to MSCI's proposed policy change that threatens to exclude companies holding 50% or more in crypto on their balance sheets from stock market index inclusion. Strategy argued that this proposed exclusion unfairly biases MSCI against crypto as an asset class, noting that MSCI does not exclude other businesses heavily invested in single asset classes like REITs or oil companies. Furthermore, Strategy contended that implementing the change undermines the US goal of global crypto leadership. Conversely, MSCI's concerns center on systemic risks, arguing that crypto treasury companies resemble investment funds rather than operating companies, lack uniform valuation methods, and their high volatility could skew index performance. MSCI's proposed rule change, effective in January, could also force these companies to divest crypto holdings, adding selling pressure to digital asset markets.

(Source：Cointelegraph)