Strategy Warns MSCI That Deleting It Would Damage the Index Provider's Reputation

Strategy asks MSCI to withdraw its index rule

Strategy's Executive Chairman Michael Saylor and Chief Executive Officer Phong Le sent MSCI a formal letter on 31 August 2026. They opposed a proposed eligibility test that could remove the company from MSCI's Global Investable Market Indexes. The letter called the plan "discriminatory, arbitrary, and misguided" and urged the index provider to withdraw it. Strategy raised a near-identical objection to MSCI in December 2025.

"If adopted, the proposal would have no meaningful impact on Strategy's business, but it would profoundly harm MSCI's reputation as a reliable and neutral index provider", 31 August 2026. — Strategy letter, signed by Michael Saylor, Executive Chairman, and Phong Le, Chief Executive Officer

MSCI screen would flag companies on five ratios

MSCI opened the consultation in August 2026. Companies whose operating assets fall below half of total assets face an exclusion screen built on five financial-ratio flags. The flags measure operating asset intensity, expense intensity, operating cash flow, fair-value changes, and dependence on outside capital. Triggering at least four flags makes a company ineligible for the indexes. MSCI would delete an existing member only after two consecutive annual failures, and a single failure adds it to a public watchlist.

A May simulation would delete three companies

MSCI ran the methodology against May 2026 data. The test would delete three firms from the MSCI ACWI Investable Market Index: Strategy, with a float-adjusted market value of $23.9 billion; Japan's Metaplanet; and UK uranium holder Yellow Cake. Three more, including Ethereum treasury company SharpLink, would move to the watchlist. Funds that track MSCI benchmarks adjust holdings to match them, so a deletion forces index-tracking funds to sell. JPMorgan analysts estimated in November 2025 that exclusion could drive $2.8 billion in outflows, rising to $11.6 billion if other index providers followed.

Strategy disputes how MSCI defines operating assets

Strategy argues the terms operating and non-operating are not defined under US generally accepted accounting principles (GAAP), International Financial Reporting Standards (IFRS), or US securities law. The company reports its bitcoin treasury as a separate operating segment in its latest quarterly filing, following discussions with SEC staff, and records bitcoin fair-value changes within operating expenses. Strategy says the plan singles out digital asset treasuries while asset-heavy firms such as real estate investment trusts, timber companies, and energy infrastructure businesses avoid the same burden. It asked MSCI to base any final test on recognized accounting or legal standards and to apply it only to filings issued after the rule is finalized.

Bitcoin trades below its 2025 record high

Bitcoin traded at $77,881 at the time of publication, down 0.8% over the past 24 hours against the previous close (CoinPaprika, 1 September 2026). The token sits about 39% below its 6 October 2025 all-time high. Strategy, the largest corporate bitcoin holder, disclosed the purchase of 4,603 BTC on Monday.

MSCI feedback closes on 30 September

MSCI accepts feedback on the proposal until 30 September 2026 and plans to publish results by 16 October. Any adopted changes would take effect no earlier than the November 2026 index review. MSCI notes the consultation may or may not lead to any change, so current index membership is unchanged for now.

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