MicroStrategy Fights Back Against MSCI's Planned Bitcoin Treasury Restrictions

MSCI Plans Exclusion of Bitcoin Treasury Companies

Global index provider MSCI plans to update its criteria in January 2026 and will exclude shares of companies where digital assets exceed 50 percent of total balance sheet assets ^[1]. The planned rule change would directly impact Michael Saylor's Bitcoin treasury firm, which currently holds 660,624 BTC worth a total of $59 billion following its most recent purchase ^[1].

Since index concepts like the MSCI World enjoy high popularity and are tracked by numerous ETFs, the planned rule change could cause capital outflows of up to $2.8 billion according to MicroStrategy ^[1]. Other forecasts even estimate approximately $8 billion in capital losses if additional index providers follow MSCI's lead ^[1].

CEO Lee Criticizes Measure as "Misinformed"

In conversation with Marlen Kayden of Schwab Network, acting CEO Phong Lee pushes back against the proposed restrictions. "I have great respect for indices like MSCI, FTSE, S&P and NASDAQ, but this move is quite misinformed and misleading," Lee begins his remarks ^[1].

Lee cites three main criticisms: First, it is a mistake that Digital Asset Treasuries are classified as "funds" rather than "operating companies." MicroStrategy has been publicly traded since 1998 and is legally speaking clearly an operating company ^[1]. Second, the 50 percent threshold is highly arbitrary and would be difficult to implement in reality, not least due to the high volatility of cryptocurrencies ^[1].

Lee calls the third point the "most concerning": Indices should be neutral, yet now political considerations could flow into index construction ^[1].

Comparison with Traditional Commodity Companies

The MicroStrategy executive argues that using the same arbitrary restriction, one could also exclude Chevron from indices because oil comprises approximately 67 percent of its assets, or Newmont because the mining company holds 61.5 percent of its reserves in gold ^[1]. It is absolutely incomprehensible why MSCI is targeting Bitcoin specifically and wants to stifle innovation in such a young industry ^[1].

Michael Saylor, who founded MicroStrategy as a software company in 1989, summarizes the argument: "Restricting passive index investment in BTC today would be comparable to restricting investments in oil and oil platforms in the 1900s, spectrum and cell towers in the 1980s, or computing and data centers in the 2000s" ^[1].

Stock Price Suffers Under Uncertainty

The dispute over Bitcoin treasuries is already weighing on the stock price. On Friday, MSTR shares closed at $176, marking a 41 percent decline since the beginning of the year ^[1]. The company hasn't been this cheap since October 2024, when it still held a significantly smaller Bitcoin position ^[1].

With a market capitalization of $51 billion, the company is valued below its BTC holdings, allowing bold investors to currently gain indirect exposure to the cryptocurrency at a discount ^[1].