NewsBTC reported on Thursday that Strategy, formerly known as MicroStrategy, led by Michael Saylor, is facing increased scrutiny regarding its potential exclusion from major indices, such as MSCI USA and the Nasdaq 100. This arises from the firm’s substantial exposure to Bitcoin (BTC).
While the cryptocurrency market was buoyant for much of the year, Saylor’s approach seemed to pay dividends. However, Bitcoin has now entered what could become one of its most challenging weeks since November 2022, experiencing a significant retracement of over 30% from its all-time highs.
Saylor Clarifies Strategy’s Role
As the largest public holder of Bitcoin, with over 650,000 coins, Strategy now confronts the real possibility of being removed from vital benchmark indices that have bolstered its visibility among investors. These indices are crucial for the firm as they help position it within various portfolios.
In response to the growing concerns about potential exclusion, Saylor took to social media platform X (formerly Twitter) to clarify that Strategy is not a fund, a trust, or a holding company.
Instead, the long-time Bitcoin bull described it as a publicly traded operating entity with a $500 million software business, employing a unique treasury strategy that leverages Bitcoin as productive capital.
Saylor highlighted that in the current year alone, Strategy has executed five public offerings of digital credit securities—STRK, STRF, STRD, STRC, and STRE—totaling over $7.7 billion in notional value.
Furthermore, the firm launched Stretch (STRC), a new Bitcoin-backed treasury credit instrument designed to generate variable USD yields for both institutional and retail investors.
He emphasized that while funds and trusts passively hold assets and holding companies simply sit on investments, Strategy actively creates, structures, issues, and operates financial products.
According to Saylor, the company’s vision is to build a pioneering type of enterprise: a Bitcoin-backed structured finance entity capable of innovation across both capital markets and software development.
Saylor also believes that index classification should not define the firm’s identity. He reassured stakeholders that their long-term strategy remains intact, stating:
…Our conviction in Bitcoin is unwavering, and our mission remains unchanged: to build the world’s first digital monetary institution on a foundation of sound money and financial innovation.
MSCI Proposes Excluding Digital Asset Firms
Analysts at JPMorgan raised concerns about the potential consequences of MSCI’s upcoming decision on January 15, 2026. They suggested that exclusion could lead to Strategy-related outflows ranging from $2.8 billion to $8.8 billion.
They noted that while active managers are not required to follow index changes, exclusion from these key indices would likely be interpreted negatively by market participants, ultimately leading to a decrease in liquidity and raised funding costs.
In its discussions with stakeholders, MSCI has indicated that some market participants view digital asset treasury firms (DATs) as operating similarly to investment funds, which would disqualify them from index inclusion.
To reflect this perspective, MSCI is proposing to exclude companies with digital asset holdings constituting 50% or more of their total assets from its global investment market indices.
Featured image from Bloomberg, chart from TradingView.com
