Strategy, the Nasdaq-listed company formerly known as MicroStrategy and the world’s largest corporate holder of Bitcoin, has urged MSCI to abandon a proposed screening methodology that would classify certain firms as non-operating companies and exclude them from the Global Investable Market Indexes. In a letter signed by Executive Chairman Michael Saylor and Chief Executive Officer Phong Le, the company argued the framework unfairly targets digital asset treasury firms and lacks grounding in established accounting or securities standards.

MSCI opened the consultation in August on eligibility criteria for companies whose operating assets represent less than 50 percent of total assets. Under the proposed system, such issuers would face five additional financial-ratio tests covering operating asset intensity, expenses, operating cash flow, fair-value changes linked to assets viewed as non-operating, and reliance on external financing. Triggering at least four of the five conditions could render a company ineligible for inclusion. Existing index constituents would need to fail the applicable tests in two consecutive annual reviews before removal.

Simulation Identifies Key Firms at Risk

A simulation based on May 2026 data illustrated the potential impact. It flagged Strategy, with a free-float-adjusted market capitalization of approximately $23.93 billion, along with Japan’s Metaplanet at $654 million and the UK-listed uranium investment vehicle Yellow Cake at $1.81 billion for possible deletion. Additional companies, including Ethereum treasury firm SharpLink, Center Laboratories and Lydia Holding, were placed on a watchlist under the proposed treatment for current constituents.

Strategy maintains that the practical effect of the rules concentrates on digital asset treasury companies even though MSCI has framed the methodology as a broader screen. The firm noted that it accounts for the large majority of the float-adjusted market capitalization at stake among the companies identified in the simulation.

Arguments on Classification and Accounting Treatment

Strategy contended that MSCI’s distinction between operating and non-operating assets has no basis in U.S. generally accepted accounting principles, International Financial Reporting Standards or existing U.S. securities law. The company reports its Bitcoin treasury operations as a separate reportable operating segment and records related fair-value gains and losses within operating expenses, following discussions with the U.S. Securities and Exchange Commission.

On that basis, Strategy argued it would not trip key flags under the proposed tests. The letter also questioned why comparable treatment would not apply to other asset-intensive businesses such as real estate investment trusts, timber companies or energy infrastructure firms that could remain eligible while digital asset treasury firms face exclusion.

The latest proposal follows an earlier 2025 consultation that sought to exclude companies whose digital-asset holdings represented 50 percent or more of total assets. That framework was withdrawn after industry opposition, with MSCI retaining the firms while developing a wider review of non-operating assets.

Company Profile and Market Context

Strategy pivoted toward a Bitcoin acquisition strategy in 2020 while continuing its enterprise software operations. It now holds 845,050 bitcoins, valued at roughly $65.8 billion at recent prices, making it the largest corporate holder of the asset. The company employs about 1,500 people globally and states that it actively uses its Bitcoin position to create long-term shareholder value rather than operating as a passive investment vehicle. Investors gain leveraged exposure to Bitcoin performance through the firm’s Nasdaq-listed shares, ticker MSTR.

Shares of Strategy closed approximately 4 percent higher on the day the letter was released, though the stock remained down about 15 percent year-to-date. The company also disclosed a recent purchase of 4,603 bitcoins at an average price of $80,318.

MSCI is accepting feedback on the proposal until September 30, with a decision expected by October 16. Any adopted changes are anticipated to take effect in the subsequent index review, potentially as early as November or December. Strategy has requested that any final methodology rest on recognized accounting or legal standards, apply only to filings prepared after the rules are finalized, and include a transparent public record of the consultation process.