Summary
- Michael Saylor and CEO Phong Le are urging MSCI to withdraw a proposed rule that could exclude Strategy from its Global Investable Market Indexes.
- The rule evaluates companies based on five financial metrics, and failing four would make a company ineligible.
- MSCI's consultation identifies three companies at risk of removal, including Strategy, Yellow Cake, and Metaplanet.
Michael Saylor, founder of Strategy, along with CEO Phong Le, has formally requested that MSCI reconsider a proposed eligibility rule that may lead to the exclusion of their Bitcoin treasury firm from global benchmarks. The letter, issued on Monday, criticizes the proposal as unjust and targeted, claiming it unfairly impacts companies that hold digital assets.
They assert that the new rule resembles a previously rejected regulation concerning companies with high crypto holdings and is fundamentally flawed. In their letter, Strategy pointed out that while the proposed exclusion might not heavily impact its stock, it contradicts established securities laws and accounting standards.
“The proposal, while it may not significantly affect our operations, could damage MSCI’s reputation as an unbiased index provider,” said Strategy. The firm also noted that it represents about 87% of the market cap at risk among the identified companies.
The current consultation process, initiated in August, aims to classify firms as "non-operating companies" based on their asset composition. Companies where operating assets constitute less than 50% of total assets would be assessed against five criteria. If a company fails four of these criteria, it risks exclusion. The consultation indicates that if applied to the ACWI IMI as of May 2026, it could lead to the removal of Strategy, valued at approximately $23.93 billion, as well as Yellow Cake and Metaplanet.
