Strategy (MSTR) has escalated its battle with global index provider MSCI (MSCI), formally submitting a detailed letter opposing the firm’s proposal to exclude companies with significant digital asset holdings from major global indices. The proposal specifically targets firms, known as Digital Asset Treasuries (DATs), where crypto assets comprise 50% or more of total assets. Since Strategy holds approximately 90% of its balance sheet in Bitcoin, it sits directly in the crosshairs.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
The stakes are enormous: exclusion from indices like the MSCI USA and MSCI World would force passive funds tied to the benchmarks to immediately sell their holdings. JPMorgan (JPM) estimates potential outflows could reach as much as $8.8 billion if other major index providers (like S&P and Russell) follow MSCI’s lead. The decision date is set for January 15, 2026.
Saylor Argues DATs Are Operating Businesses
Led by Executive Chairman Michael Saylor, Strategy argues in its letter that the company is an operating business that uses Bitcoin as productive capital, not a passive investment fund. The firm pointed to its core functions: managing a Bitcoin-backed corporate treasury, issuing related credit instruments, and maintaining its enterprise analytics software business.
Strategy listed five specific reasons it is not an investment fund, including its structure as a conventional operating company and its lack of an ETP (Exchange Traded Product) structure or obligations.
Index Rule Risks Arbitrary Chaos
Strategy fiercely criticized the 50% digital asset threshold as “arbitrary, discriminatory, and unworkable”. The company argues that many traditional businesses, such as oil majors, timber companies, and REITs, maintain concentrated reserves in a single asset type yet remain eligible for MSCI indices, meaning the index provider is unfairly singling out only digital-asset-heavy companies.
The company further warns that price volatility and differing global accounting standards (GAAP vs. IFRS) would cause DATs to “whipsaw on and off” major indices, creating instability and “chaos and confusion” for investors.
Ultimately, Saylor warned the move would improperly inject policy views into neutral index construction, “stifle innovation,” and undermine American competitiveness in the digital asset sector.
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 158.9% from the last price.
