Strategy Warns MSCI’s Crypto Test Will Blow Up Index Stability As MSTR Sits 60% Off Its Lows
Strategy Inc. (NASDAQ:MSTR) is escalating its fight against MSCI’s proposed 50% digital-asset threshold, arguing the rule would destabilize global index construction just as the stock trades nearly 60% below its peak.
Strategy Challenges MSCI’s Treatment Of Bitcoin Treasury Firms
In a 12-page letter to the MSCI Equity Index Committee, Strategy said Bitcoin-treasury firms would “whipsaw on and off” major indexes as market prices shift, arguing the rule would generate uncertainty for providers and passive investors.
The firm also said MSCI’s threshold ignores operational activity and relies on an arbitrary definition as more U.S. corporations expand digital-asset treasuries.
A central concern is inconsistent accounting.
Michalel Saylor’s Strategy noted that firms reporting under IFRS can keep Bitcoin (CRYPTO: BTC) at cost, while U.S. GAAP requires fair-value marks.
Two companies with identical exposure could therefore receive different index treatment based solely on jurisdiction, raising questions …
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