- Strategy asks MSCI to withdraw a proposed eligibility framework it calls discriminatory and arbitrary.
- The new methodology would screen index constituents using operating assets and five financial ratios.
- Strategy warns the definition of an operating company is undefined and would hit digital-asset treasury firms.
- MSCI could publish a list of affected companies on Nov. 11.
Shares of Michael Saylor-backed Strategy (MSTR) fell more than 6% in midday trading Friday, reversing Thursday’s gains, after MSCI said it would adopt a new screening approach for its global benchmark indexes. The change could put the Bitcoin treasury firm’s index membership at risk.
In a letter to MSCI, Strategy urged the index provider to withdraw the proposal. The company argued that the new methodology repackages an earlier, abandoned effort to exclude companies whose digital-asset holdings account for at least 50% of total assets.
“The proposal, like the 2025 proposal that MSCI withdrew, is discriminatory, arbitrary, and misguided,” Strategy wrote to MSCI‘s Equity Index Committee. The company said the changes would have little effect on its business but could damage MSCI‘s reputation as a neutral index provider.
MSCI‘s revised methodology would screen companies using measures of operating assets and five financial ratios, rather than the previous proposal’s digital-asset ownership threshold. The updated framework is scheduled to take effect with the November index review.
According to Strategy‘s letter, MSCI‘s distinction between operating and non-operating assets relies on undefined terms not established under generally accepted accounting principles or International Financial Reporting Standards. Strategy also said the screen would disproportionately affect digital-asset treasury companies despite being presented as a broader, industry-neutral policy.
Strategy currently holds 848,250 Bitcoin, worth around $69 billion at Bitcoin’s current price of over $81,300. Bitcoin fell about 1.25% in the past 24 hours, and on Stocktwits, retail sentiment around Strategy has trended in ‘bearish’ territory for almost three months.
Strategy asked MSCI to withdraw the proposal or revise it with clear definitions, objective criteria, and prospective implementation. It also called for MSCI to publish its consultation record and explain the rationale behind its thresholds.
MSCI is expected to publish a list of potentially affected companies on Nov. 11. Meanwhile, Cantor Fitzgerald raised its price target on MSTR stock to $208 from $186 and reiterated an “Overweight” rating.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
