Overview
- On Dec. 10, Strategy filed a 12-page letter asserting that digital-asset treasury companies are operating businesses rather than funds, noting it holds roughly 660,000 BTC.
- The company calls the 50% threshold arbitrary and warns of “whipsaw” entries and exits driven by crypto volatility and accounting differences between IFRS and U.S. GAAP.
- JPMorgan estimates about $2.8 billion could flow out of Strategy if removed from MSCI benchmarks, potentially rising to $8.8 billion if other index providers follow.
- MSCI’s rationale is that very high crypto exposure can make equities resemble investment vehicles and complicate valuation and volatility profiles for equity indices.
- The consultation remains open with a decision due Jan. 15, 2026, ahead of the February rebalance, as industry groups such as Strive and Bitcoin For Corporations also register objections.