Strategy has written to the MSCI Equity Index Committee, urging it to abandon a proposal to ban companies with digital asset holdings exceeding 50% of their total assets from inclusion in its global equity benchmark. Strategy warns that this move would lead to wild index volatility and contradict the US government's policy of promoting innovation in digital assets. Strategy argues that companies holding Bitcoin assets would "drastically in and out" of major indices if Bitcoin prices fluctuate or accounting standards differ, causing confusion for index providers and investors. MSCI counters that digital asset reserves (DATs) like Strategy and BitMine are more like investment funds than traditional operating businesses. Strategy points out that the rule is difficult to apply consistently because IFRS reporting allows companies to price Bitcoin at cost, while U.S. GAAP requires quarterly fair value marking. Strategy is the largest publicly disclosed Bitcoin holder, holding 660,624 BTC, worth nearly $61 billion. JPMorgan analysts estimate that Strategy could face approximately $2.8 billion in passive capital outflows if it is removed. MSCI is expected to make a final decision by January 15.
