TL;DR
- Strategy Inc responded to MSCI regarding the proposal to exclude Digital Asset Treasury Companies (DATs) from its global indexes.
- The company states that DATs are operating businesses that use crypto reserves to generate returns through corporate treasury programs.
- Excluding DATs could destabilize indexes, limit access to capital, hinder U.S. digital asset innovation, and trigger billions in capital outflows.
Strategy Inc., which holds the world’s largest Bitcoin treasury, formally responded to MSCI regarding the proposal to exclude Digital Asset Treasury Companies (DATs) from its global indexes.
MSCI is considering making any company ineligible if digital assets account for more than 50% of its balance sheet, a measure that would directly impact Strategy and other firms with significant Bitcoin exposure.
The company argues that DATs are not passive funds but operating businesses that actively use their crypto reserves to generate returns through corporate treasury programs. Strategy issues equity and debt instruments linked to its Bitcoin strategy, comparing its model to banks and insurers that capture spreads between financing costs and returns on underlying assets. The firm notes that other industries with concentrated asset holdings—such as oil majors, REITs, miners, or media companies—are not subject to similar exclusions, making the proposal discriminatory and arbitrary.
Strategy Could Face Billions in Outflows if Excluded from the Index
Strategy also criticizes the 50% threshold as unworkable due to crypto market volatility and differences between GAAP and IFRS accounting standards. The company warns that this rule could cause companies to move in and out of indexes repeatedly, undermining index stability and investor confidence. Additionally, it would effectively put MSCI in a quasi-regulatory role, deciding which business models are acceptable, deviating from its mission of providing neutral benchmarks.
The statement emphasizes that excluding DATs conflicts with the U.S. digital asset innovation strategy, which aims to position the country as a global leader through initiatives like the Strategic Bitcoin Reserve and integrating crypto assets into retirement plans. According to Strategy, the measure would restrict access to passive capital, slow innovation, and weaken U.S. competitiveness in a strategically important sector.
The company urges MSCI to reject the proposal or, at a minimum, extend the consultation to allow for a more thorough review. It argues that DATs, like other transformative technologies such as oil or telecommunications, should be evaluated by the market rather than through arbitrary exclusion criteria. Analysts estimate that implementing the rule could trigger billions in capital outflows from companies like Strategy, compromising the representativeness and neutrality of MSCI indexes
