Strategy (MSTR) is intensifying its public war with index provider MSCI (MSCI), with CEO Phong Le directly comparing MSCI’s proposal to remove firms with large crypto holdings to a biased attack on the digital asset class. Le argued that excluding companies like Strategy, which holds the majority of its assets in Bitcoin, would be like “penalizing Chevron for holding oil” or removing timberland company Weyerhaeuser (WY) for holding wood.
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MSCI is consulting on a proposal to exclude Digital Asset Treasury companies (DATs) whose crypto holdings represent 50% or more of their total assets, arguing that they “exhibit characteristics similar to investment funds,” which are typically ineligible for index inclusion.
Saylor’s Firm Defends Operating Company Status
CEO Phong Le strongly pushed back on the “investment fund” characterization, calling MSCI’s stance “misinformed and misguided.”
Le stressed that Strategy is “100% an operating company” that was founded in 1989 and has been public since 1998, emphasizing its long history as a software business with a proper corporate structure. The core of the argument is that Strategy utilizes its Bitcoin treasury as productive capital, differentiating it from a passive investment vehicle.
Exclusion Threatens American Innovation
The CEO further warned that MSCI’s proposal improperly injects policy views and bias into its neutral index construction at a critical time for the sector. He argued that the move would dangerously “stifle innovation” in the digital asset category.
Le drew a historical comparison, stating the exclusion is akin to index providers in,
- The 1980s saying telecom companies shouldn’t have invested in cell towers and spectrum.
- Three years ago saying AI companies shouldn’t invest in LLM labs and high-performance computing.
Le’s comments coincide with the release of Strategy’s formal letter to MSCI, which explicitly argues that the exclusion proposal biases the index against crypto as an asset class. The consultation remains open until December 31, with the conclusion due on January 15 next year.
Is Strategy a Good Stock to Buy?
Analyst sentiment toward Strategy (MSTR), the company formerly known as MicroStrategy, is rated as a Strong Buy, based on the consensus of 14 Wall Street analysts tracked in the last three months. Of these ratings, 12 analysts call it a Buy, two recommend a Hold, and zero recommend a Sell.
The average 12-month MSTR price target sits at $481.08. This target implies a massive upside potential of 160.55% from the last price.
