Strategy Fires Back at MSCI Over Potential Index Removal

MicroStrategy is pushing back against a proposal from index provider MSCI that could see the firm removed from its Global Investable Market Indexes. MSCI is currently consulting on new rules for Non Operating Companies. If adopted, these rules would exclude firms that hold significant amounts of Bitcoin rather than operating traditional businesses.

Company leadership responded on social media by stating that index providers should track markets instead of deciding which assets firms can own. They argued that the proposal puts MSCI out of step with regulators and its own customers. The index firm is also looking at similar companies, including Japanese firm Metaplanet, which maintains a large Bitcoin treasury.

If the rule is implemented, it could lead to forced selling by index tracking funds and a reduction in passive investment. However, the consultation process is still open until September 30. MSCI has noted that the final decision might change, be delayed, or be dropped entirely based on feedback from the market.

Investors are watching this closely as the firm is the largest corporate holder of Bitcoin in the world. With shares currently down 40 percent year to date, any potential removal from major indexes creates a new layer of uncertainty for shareholders who use the stock as a way to gain exposure to the crypto market.