Strategy, the largest Bitcoin treasury company in the world, has formally responded to global index provider MSCI regarding a proposed rule change that could exclude firms holding 50 percent or more of their balance sheets in digital assets. The company submitted its feedback on Wednesday, arguing that the policy would unfairly discriminate against businesses with significant cryptocurrency holdings.
The letter stated that digital asset treasury companies like Strategy are not passive investment vehicles. Instead, they are operating companies capable of evolving their models and adjusting their business activity. Strategy highlighted its own Bitcoin backed credit instruments as an example of how such firms actively build financial products and operate commercially.
According to the company, MSCI’s proposed criteria would shift the index provider away from a neutral stance and toward a position that places a negative bias on crypto as an asset class.
Strategy says MSCI policy would create unequal treatment
In its letter, Strategy argued that MSCI does not impose similar restrictions on companies highly concentrated in other asset classes. Examples include real estate investment trusts, oil producers and firms with large media portfolios. Strategy noted that financial institutions often hold a single asset class and create derivatives backed by those assets, such as residential mortgage backed securities.
The company also said the proposed shift could conflict with United States policy goals. It cited the current administration’s stated objective of making the US a global leader in digital assets. Excluding crypto treasury companies from global indexes could undermine that ambition.
However, critics maintain that including crypto heavy companies in equity indexes creates several risks. MSCI said that firms capitalized mainly on crypto behave more like investment funds than operating companies that produce goods and services. This complicates how the companies are classified and valued inside indexes.
MSCI added that cryptocurrencies do not have uniform valuation methodologies, which could introduce distortions within index calculations.
Concerns over volatility, leverage and spillover risk
Strategy currently holds 660,624 Bitcoin on its balance sheet. The company’s stock price has fallen more than 50 percent over the past year, according to Yahoo Finance. Meanwhile, Bitcoin itself is down around 15 percent since the start of 2025, creating a gap between the performance of the underlying asset and its equity wrapper.
Regulators and researchers warn that the volatility of digital assets could spill over into traditional equity markets if crypto concentrated companies are included in major indexes. A Federal Reserve paper noted that leverage in the crypto market amplifies volatility and contributes to instability.
MSCI also warned that the rule change, scheduled to take effect in January, could trigger unintended selling. Treasury companies might reduce their crypto holdings purely to meet index eligibility standards, potentially increasing selling pressure across digital asset markets.
Conclusion
The feedback from Strategy highlights the growing debate over how global index providers should classify companies with large crypto exposures. While Strategy argues the proposed rules create unfair treatment and hinder US leadership goals, MSCI and regulators point to risks involving valuation, volatility and spillover effects. The upcoming January deadline places additional focus on how the policy could reshape the presence of crypto treasury companies in mainstream financial indexes.
