MicroStrategy fights MSCI plan to exclude crypto treasury firms

The dispute centers on a proposed MSCI framework that would subject companies with less than 50% operating assets to five rigorous financial-ratio tests. Under this system, failing four of those criteria could trigger removal from the MSCI Global Investable Market Indexes. A May simulation identified MicroStrategy, along with Metaplanet and Yellow Cake, as candidates for potential deletion, sparking a pushback from companies that hold significant Bitcoin reserves.

MicroStrategy contends that MSCI’s distinction between operating and non-operating assets lacks grounding in U.S. GAAP, IFRS, or existing securities law. The company maintains that its Bitcoin holdings function as an operating segment, a classification supported by its discussions with the U.S. Securities and Exchange Commission. By contrast, MSCI treats the cryptocurrency as a non-operating asset, creating a fundamental disagreement over how to categorize the firm’s balance sheet. MicroStrategy has questioned why the proposal does not apply similar scrutiny to other asset-heavy sectors like real estate investment trusts or energy infrastructure.

MSCI is accepting feedback through Sept. 30, with a final decision expected by Oct. 16. If adopted, the changes could take effect as early as December, potentially forcing passive funds to divest from companies deemed ineligible. MicroStrategy has demanded that any final rules rely on objective, recognized accounting standards and that they only apply to filings released after the methodology is finalized. This standoff marks the latest chapter in a broader debate over how global index providers should treat corporations that prioritize digital asset accumulation as a core business strategy.