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Strategy Demands MSCI Withdraw Proposed ‘Non‑Operating’ Index Screen

The company says the test would let MSCI reclassify corporate bitcoin holdings and could force mechanical selling from index‑tracking funds if exclusions are adopted.

Overview

  • Strategy sent a formal letter signed by Michael Saylor and CEO Phong Le on Monday asking MSCI to withdraw the proposal, preserve consultation records, and justify the methodology.
  • MSCI’s draft test first flags firms whose operating assets are under 50% of total assets and then applies five financial‑ratio screens where failing four would render a company ineligible for its Global Investable Market Indexes.
  • A May 2026 MSCI simulation identified Strategy, Metaplanet and Yellow Cake for deletion and put three others on a watchlist while Strategy says it represents roughly 87% of the market value at stake.
  • Strategy points to its August 10‑Q that reports Bitcoin as a separate operating segment and records fair‑value changes in operating results, arguing MSCI’s classification conflicts with reporting and accounting practice.
  • Public comments close Sept. 30, MSCI expects to publish results by Oct. 16 with any changes applied in the November/December index review, and market watchers warn exclusions could trigger billions in forced selling even as Strategy notes MSCI‑tracking funds hold only about 3% of its shares.