MSTR Calls MSCI’s 50% Threshold For DATs ‘Discriminatory, Arbitrary, Unworkable’ — Urges Inclusion Of Bitcoin-Focused Firms

In a letter to MSCI, the company argued that such a rule mischaracterizes its business.

• Strategy told MSCI its digital asset holdings are part of an operating model, not a passive investment strategy.
• The company said a 50% digital-asset threshold would be difficult to apply because asset values move with the market.
• Excluding digital-asset-focused firms, Strategy argued, risks undermining U.S. leadership in emerging financial technologies.

Michael Saylor-backed Strategy (MSTR) on Wednesday urged MSCI in a letter not to exclude companies from its Global Investable Market Index simply because over 50% of their assets are digital.

In a letter to the index provider, Strategy argued the threshold “mischaracterizes” its business model and risks penalizing firms developing new financial infrastructure around Bitcoin (BTC).

MSTR’s stock was down more than 2% in morning trade. On Stocktwits, retail sentiment around the company trended in ‘bearish’ territory, down from ‘extremely bullish’ a week ago. Chatter also fell to ‘low’ from ‘high’ levels during that time. Meanwhile, Bitcoin’s price gained 1.9% in the last 24 hours, trading at around $91,800. Retail sentiment around the apex cryptocurrency fell to ‘bearish’ from ‘neutral’ over the past week, as chatter dipped to ‘low’ from ‘normal’ levels.

Strategy Pushes Back On MSCI’s 50% Digital Asset Limit

The company said it should not be grouped with investment funds because its digital asset treasury (DAT) strategy is tied to operating activities. Strategy uses its Bitcoin holdings to support revenue-generating products, such as Bitcoin-backed credit services, rather than passively holding tokens. Classifying companies solely by the composition of their balance sheets, it said, ignores business function and introduces distortions across sectors.

Strategy said the proposed threshold is “arbitrary, discriminatory, and unworkable", as asset values fluctuate and accounting standards differ. It added that other industries with concentrated asset bases, such as oil, timber, or real estate, are not subject to similar limits.

Implementation Challenges And Policy Risks

The company warned that applying a fixed digital-asset threshold would require MSCI to monitor volatile market prices and continuously reclassify companies, creating uncertainty for issuers and index-tracking investors. It argued that such a rule would pull MSCI into policy-making territory rather than maintaining the index provider’s stated goal of neutrality.

Strategy also said excluding digital-asset-heavy firms could limit innovation and weaken the U.S. position in early-stage financial technologies, particularly as Bitcoin-linked products and balance-sheet strategies spread globally.

The firm recommended that MSCI pause the proposal and adopt a more consultative process, similar to the discussions that led to the “Communication Services” sector realignment several years ago. Allowing the digital asset treasury category to mature would help avoid prematurely codifying limits that could later prove outdated, the company said.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<