Strategy, the leading Bitcoin treasury firm, provided feedback to index company MSCI on Wednesday regarding a proposed policy change that would prevent digital asset treasury firms with 50% or more in crypto from being included in stock market indexes.
Digital asset treasury companies are active businesses that can modify their operations, according to the letter, which referenced Strategy’s Bitcoin-backed credit products as an illustration.
The letter argued that the proposed policy shift would show bias against crypto as an asset class, rather than MSCI acting as an impartial arbiter.
According to Strategy, MSCI does not exclude other types of businesses that invest heavily in a single asset class, such as real estate investment trusts (REITs), oil firms, and media conglomerates. The letter stated:
“Many financial institutions primarily hold certain types of assets and then package and sell derivatives backed by those assets, like residential mortgage-backed securities.”
Additionally, the letter claimed that implementing the change “undermines” US President Donald Trump’s vision of positioning the United States as a leader in crypto. Nevertheless, critics contend that including crypto treasury companies in global indices presents various risks.
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Crypto treasury companies can generate systemic risks and spillover effects
According to MSCI, crypto treasury companies resemble investment funds rather than operating entities that produce goods and services, as noted in a report.
MSCI also indicated that companies involved in cryptocurrencies lack consistent and clear valuation methods, complicating proper accounting and potentially distorting index values.
As of this writing, Strategy held 660,624 BTC on its balance sheet. The stock has depreciated by over 50% in the past year, as reported by Yahoo Finance.
Bitcoin (BTC) is also down 15% from its value at the start of 2025, when it was trading above $109,000, indicating that the underlying asset has outperformed the equity wrapper.
The high volatility associated with cryptocurrencies could increase the volatility of the indexes tracking these firms or introduce correlation risks, whereby index performance reflects the cryptocurrency market’s performance, as outlined in a study from the Federal Reserve.
The “common use” of leverage among crypto traders increases volatility and contributes to the fragility of crypto as an asset class, the Federal Reserve noted.
MSCI’s proposed policy change, which is set to be implemented in January, could also lead treasury companies to offload their crypto holdings to comply with the new index inclusion criteria, thereby exerting additional selling pressure on digital asset markets.
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