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Strategy is not backing down. The Bitcoin treasury company has sent a direct letter to Morgan Stanley Capital International to contest a proposal that, if passed, could see it removed from major global investable market indices. No diplomacy. No half-measures.
Michael Saylor and Phong Le, the two founders, signed this letter together. Their message is clear: MSCI is on the wrong track, and the proposal is both “erroneous” and “biased.” That’s the word they use. Biased. Not a light criticism for a company whose actions are followed by thousands of institutional investors worldwide.
MSCI Aims to Redefine What Constitutes an “Operational” Company
The core issue is a matter of definition. MSCI is considering classifying certain companies as “non-operational” — and those would be excluded from its indices. For Strategy, falling into this category would be absurd. The company employs 1,500 people. It reports its Bitcoin activities as a full-fledged operational segment, with the associated gains and losses. Hard to argue it’s an empty shell.
But MSCI seems to be targeting companies whose main activity revolves around digital assets. In 2025, the organization had already attempted to exclude companies whose digital assets represented more than 50% of their total assets. Strategy survived that attempt. Now, it’s a second salvo, and the company clearly states it doesn’t intend to remain silent.
No surprise. Strategy is currently the largest corporate holder of Bitcoin globally, with 845,050 bitcoins in its portfolio. Formerly known as MicroStrategy, it began accumulating Bitcoin in 2020 — a decision that was considered crazy by many traditional analysts at the time. Since then, it has become a benchmark in the sector.
Methodology Deemed Arbitrary
Strategy goes beyond mere protest. It directly attacks the logic behind MSCI’s methodology. Labeling Bitcoin as a “non-operational” asset is, according to the company, unprecedented in the history of financial indices. No other type of asset has been treated this way, it says.
And this is where it gets interesting. Strategy doesn’t just say the rule is unfair to it. It says the rule is arbitrary for everyone. That MSCI, by specifically targeting digital asset companies, is questioning its own neutrality — and thus its credibility as a provider of benchmark indices.
For an institutional investor, it’s a signal that’s hard to ignore. Major index funds, ETFs, retirement plans — all use MSCI indices as a compass. If the methodology becomes perceived as biased, trust erodes. Strategy is pushing exactly that button.
The company also insists on a practical point: its investments in Bitcoin are integrated into its core operations, not tucked away in a speculative corner. It claims to comply with established laws and accounting principles. It says its model is transparent. And it asks MSCI to withdraw the proposal — just as the first one was withdrawn in 2025.
It remains to be seen if MSCI will budge this time.
The Market Responds in Its Own Way
While the letter battle plays out behind the scenes, the market gave its verdict for the day: MSTR stock closed up 4% on Monday. Not bad for a day when the company is officially at odds with one of the most influential index organizations in the world.
But the picture for the year is less rosy. Since January, MSTR has lost 15%. It’s the kind of figure that reminds you that Strategy is fundamentally a direct exposure to Bitcoin — investors buying MSTR shares on Nasdaq know this. When Bitcoin rises, MSTR rises. When Bitcoin falls, MSTR falls, often more sharply.
The exclusion from MSCI indices is not just a symbolic issue. It’s concrete. Funds replicating these indices would be mechanically forced to sell their positions in MSTR if the company is removed. Less liquidity, less visibility, fewer automatic institutional buyers. Strategy has every reason to fight.
And for now, it is fighting. With 845,050 bitcoins on the balance sheet and two founders who have put their names on the letter, the message is hard to ignore. MSTR stock up 4% on Monday, despite all the noise.
Hub: Bitcoin: Price, News, and Analysis
Frequently Asked Questions
Why does MSCI want to exclude Strategy from its indices?
MSCI is considering excluding companies it deems “non-operational,” a category that could include Strategy due to its strategy focused on holding Bitcoin as a primary asset.
How many bitcoins does Strategy currently hold?
Strategy holds 845,050 bitcoins, making it the largest corporate holder of the cryptocurrency in the world.
What is the impact of MSCI exclusion on a stock like MSTR?
An exclusion would force index funds replicating MSCI indices to mechanically sell their positions in MSTR, reducing the stock’s liquidity and visibility among institutional investors.
Why It Matters
The pushback from the Bitcoin treasury company underscores the growing tensions between traditional financial institutions and the rapidly evolving cryptocurrency sector. As MSCI's decisions can significantly influence institutional investment strategies, this confrontation highlights the broader debate over the legitimacy and integration of digital assets in established financial frameworks. The outcome of this dispute may impact not only the Bitcoin treasury company’s standing but also the perception of cryptocurrencies among mainstream investors.
