Michael Saylor Slams Proposal to Remove Bitcoin-Focused Firms From US Indexes

Strategy Inc. Executive Chairman Michael Saylor sharply criticized a proposal that would bar major Bitcoin-holding companies from MSCI indexes, calling the move “misguided,” “arbitrary,” and “harmful” to innovation in the United States.

In a 12-page letter sent Wednesday, Saylor and Strategy CEO Phong Le outlined four major objections to MSCI’s rule, which would exclude companies whose crypto holdings exceed 50% of total assets. Strategy — the largest digital-asset-treasury (DAT) company — currently holds about $61 billion in Bitcoin, representing over 85% of its enterprise value.

MSCI is expected to issue its final decision by January 15.

Strategy Warns of Severe Market Impact

According to Strategy, adopting the proposed 50% cap would have “profoundly harmful consequences”, potentially distorting the equity landscape and discouraging innovation. JPMorgan analysts previously estimated that up to $2.8 billion could flow out of Strategy if it is removed from MSCI indexes — and billions more if other providers follow.

The bank noted that the risk of exclusion may already be priced in, meaning MSCI’s final decision could end up acting as a positive catalyst for the stock.

Saylor: Proposal Arbitrarily Targets Digital Asset Firms

The letter argues the rule unfairly singles out digital asset companies, while firms with heavy exposure to commodities such as oil, timber, or gold face no similar restrictions.

Strategy also highlighted issues with accounting treatment and price volatility, noting that crypto-linked assets shouldn’t be evaluated through a simplified threshold that fails to reflect their business model.

Proposal Conflicts With US Political Environment, Strategy Says

Saylor and Le emphasized that the proposal runs counter to the pro-crypto stance of the Trump administration, referencing recent executive actions designed to encourage digital financial innovation.

They argue exclusion would stifle entrepreneurship, hinder US competitiveness, and harm national security by weakening the country’s position in the global digital-asset ecosystem.

DATs Are Not Passive Bitcoin Wrappers

A key part of Strategy’s defense is that DAT companies are not investment funds. Instead, they deploy Bitcoin strategically to generate shareholder value and pursue technological innovation.

According to the letter, Strategy "actively uses its Bitcoin" in various value-creation initiatives, making it fundamentally different from a passive vehicle tracking BTC price.

Concerns About Index Neutrality

Saylor also challenged the proposal on governance grounds, warning that MSCI’s rule could raise questions about index neutrality. The letter claims that the policy contradicts MSCI’s mandate as a standard-setting organization.

Other Firms Push Back: Strive Joins the Opposition

Strive Asset Management — another DAT firm co-founded by former US presidential candidate Vivek Ramaswamy — filed a similar letter. CEO Matt Cole echoed Strategy’s arguments, stating that index providers should reflect the equity universe, not impose subjective views on emerging business models.

DAT Sector Under Pressure as Market Declines

Strategy, founded in 1989, pioneered the DAT model, which previously saw enormous market enthusiasm as investors — including major public figures — poured in. But many DAT firms have since struggled, with share prices falling below the value of their underlying Bitcoin holdings, raising fresh questions about the model’s future.