Strategy challenges MSCI’s draft screening rules for firms with large non‑operating assets

Strategy has lodged a formal objection to MSCI’s latest proposal to screen companies that hold large amounts of assets classified as non‑operating. The firm argues that the methodology disproportionately affects digital‑asset treasury companies and could lead to its removal from MSCI’s global equity indexes.

Proposed screening framework

MSCI’s draft rules would subject companies whose operating assets represent less than 50 % of total assets to five additional financial‑ratio tests. Triggering at least four of these tests could label a firm as non‑operating and make it ineligible for the MSCI Global Investable Market Indexes. The tests examine operating asset intensity, expenses, operating cash flow, fair‑value changes tied to non‑operating assets and reliance on financing to acquire those assets.

Strategy’s objections

In a letter signed by Executive Chairman Michael Saylor and CEO Phong Le, Strategy called the proposal “discriminatory, arbitrary, and misguided.” The company contends that MSCI’s distinction between operating and non‑operating assets is not defined under U.S. GAAP, IFRS, or U.S. securities law. Strategy also points out that its Bitcoin treasury is reported as an operating segment, with related gains and losses recorded as operating expenses after discussions with the SEC.

Strategy argues that other asset‑heavy businesses—such as REITs, timber firms and energy‑infrastructure companies—would not face the same treatment, concentrating the impact on digital‑asset treasury firms.

Potential impact on listed firms

A simulation using May 2026 data identified Strategy, Metaplanet and U.K.‑listed uranium investment company Yellow Cake as candidates for removal under the proposed methodology. The simulation listed Strategy with a free‑float‑adjusted market cap of $23.93 billion, Yellow Cake at $1.81 billion and Metaplanet at $654 million. Additional firms such as SharpLink, Center Laboratories and Lydia Holding were placed on a watchlist.

Consultation timeline

MSCI is accepting comments on the proposal until September 30. A decision is expected by October 16, with any adopted changes slated to take effect in December.

Strategy’s ongoing Bitcoin activity

Despite the dispute, Strategy continues to expand its corporate Bitcoin treasury. The company disclosed a purchase of 4,603 BTC at an average price of $80,318 per coin, bringing its holdings to over 847,000 BTC. Recent equity issuances have also increased its U.S. dollar reserve to $1.4 billion, providing liquidity for dividend payments and other corporate needs.