Strategy hits back at MSCI proposal, calling it 'discriminatory' against DATs

Strategy, the world's biggest digital asset treasury firm, formally opposed MSCI's latest proposal to exclude certain "non-operating asset" companies from the MSCI Global Investable Market Indexes, calling it a disguised effort to remove digital asset treasury firms from the indices.

In a Monday letter signed by Executive Chairman Michael Saylor and CEO Phong Le, the company said MSCI's consultation "is discriminatory, arbitrary, and misguided" and should be withdrawn. 

"If adopted, the proposal would have no meaningful impact on Strategy's business, but it would profoundly harm MSCI's reputation as a reliable and neutral index provider," Strategy wrote in the letter.

Last month, the index provider opened a new consultation where companies that have operating assets lower than 50% of its total assets would be subject to five additional financial-ratio examinations. Triggering at least four flags would render the firm ineligible for the index listing. 

This is an extension of MSCI's 2025 review of whether digital asset treasury firms should remain in its indices. Following industry backlash, MSCI decided in January not to exclude such firms and reevaluate their criteria.

A simulation of the screening in May 2026 named Strategy, Metaplanet and uranium holder Yellow Cake for immediate deletion and put SharpLink on the watchlist.

Targeting DATs

Strategy's letter called MSCI's new proposal a "pretext" for targeting digital asset treasury companies. Strategy argued that "operating" and "non-operating" are undefined in the U.S. GAAP, IFRS or existing securities-law tests, and that MSCI treats bitcoin as a non-operating asset even though Strategy reports its bitcoin treasury as an operating segment and records related gains and losses as operating expenses after discussions with the Securities and Exchange Commission.

The company further argued that the test would spare other asset-heavy businesses such as REITs, timber firms and energy infrastructure companies while concentrating the impact on DATs.

If MSCI proceeds, Strategy asked that any rule apply only to filings issued after the proposal is finalized on recognized accounting or legal standards, and accompanied by a published consultation record. It also requested that MSCI clearly explain the need for the screening method and the distinction between "operating" and "non-operating" assets and activities using objective criteria.

MSCI is accepting feedback until Sept. 30 and plans to announce the result by Oct. 16. Any changes would become effective in December.

Meanwhile, Strategy (MSTR) rose 4.42% on Monday to close at $132.94. On the same day, it announced that it had purchased 4,603 BTC last week at an average price of $80,318 per bitcoin.