Coinspeaker
3 hours ago
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Strategy Challenges MSCI Proposal to Exclude Digital Asset Companies

Key Developments:

  • Strategy Inc, the largest Bitcoin treasury company, opposes MSCI's proposal to exclude digital asset treasury companies (DATs) from its Global Investable Market Indexes.
  • The exclusion targets firms with over 50% of their assets in digital assets, which could impact companies like Strategy, holding over 660,000 Bitcoins valued at more than $60 billion.
  • MSCI posits DATs resemble investment funds rather than operational businesses, challenging their inclusion in equity benchmarks.
  • Strategy's leaders argue that they are operational and use Bitcoin holdings for shareholder returns through digital credits and analytics software.
  • If removed, passive funds tracking MSCI indexes might sell billions of shares, potentially leading to an $8.8 billion outflow and increased stock volatility.
  • Despite market cap concerns, Strategy's CEO assures there will be no Bitcoin sales until 2065.

Graph of Strategy's stock prices in the market | Source: Yahoo! Finance

Strategy’s stock prices closely follow Bitcoin’s price movements, suggesting limited immediate impact from potential index removal but signaling broader implications for institutional acceptance of digital asset strategies.