- Strategy said MSCI’s proposed eligibility criterion for “non-operating” companies effectively targets digital-asset treasury companies.
- The proposal could remove Strategy from the MSCI Global Investable Market Indexes, but the company said tracker funds hold only 3.1% of its outstanding common shares.
- MSCI will accept consultation feedback through Sept. 30 and is expected to announce the results on Oct. 16.
Strategy has opposed MSCI’s mid-August 2026 proposal to introduce a new eligibility criterion for “non-operating” companies in its Global Investable Market Indexes, arguing that the measure is a pretext to exclude digital-asset treasury companies. The proposal matters to Strategy because it could remove the company from the MSCI GIMI indexes, although Strategy said such an exclusion would not have a material impact.
According to Strategy, funds tracking the MSCI GIMI indexes hold only 3.1% of its outstanding common shares. The company said those holdings amount to about 13 million shares, less than one day’s trading volume in MSTR.
The proposal represents MSCI’s second attempt to remove digital-asset treasury companies, or DATs, from the indexes. A previous attempt in late 2025 failed.
Strategy urged MSCI to withdraw what it called a misguided proposal. The company said MSCI was “repackaging” its withdrawn plan to exclude companies with more than 50% of their assets in cryptocurrency, using different wording to pursue the same outcome.
Strategy also said the terms “operating” and “non-operating” company are not defined in US GAAP, International Financial Reporting Standards or any recognized legal framework. It argued that the terminology may have been designed to produce a predetermined outcome.
The company said excluding Strategy would conflict with established accounting principles and securities laws. Strategy said it reports its business as an operating segment in accordance with US GAAP and following discussions with staff at the U.S. Securities and Exchange Commission.
Strategy also argued that MSCI’s proposal would inject MSCI’s political judgments into the index-construction process, undermining the neutrality and reliability on which MSCI’s clients depend.
MSCI consultation timeline
MSCI announced the consultation on Aug. 3 and will accept feedback through Sept. 30. It is expected to announce the consultation results on Oct. 16.
If MSCI approves the proposal, it is expected to announce potential changes to index constituents on Nov. 11. Those changes could take effect on Dec. 1.
Strategy urged market participants to support its position by sending a letter to MSCI.
Source: Incrypted
