Strategy challenges MSCI’s Bitcoin screening methodology

Strategy, a Bitcoin treasury company, has filed a formal objection to MSCI’s proposed “non‑operating company” screen. The objection links MSCI’s new methodology to a 2022 comment MSCI made to the U.S. Securities and Exchange Commission (SEC), arguing that the screen forces MSCI to make a judgment about whether Bitcoin is an operating asset.

Background on MSCI’s proposal

On August 3, MSCI opened a public consultation to expand its exclusion criteria for Global Investable Market Indexes. The proposal adds a core screen and five financial‑ratio tests to identify “non‑operating companies.” Companies triggering four of the flags would be ineligible for inclusion.

Strategy’s regulatory argument

In 2022, MSCI told the SEC that index providers “express no opinion or view as to whether any market, company, strategy or investment is good or bad.” Strategy contends that the new screen contradicts this stance because it requires MSCI to decide if Bitcoin qualifies as an operating corporate asset.

Why the classification matters

• GAAP and IFRS do not define “operating” versus “non‑operating” assets in the way MSCI proposes.
• Strategy reports Bitcoin as a separate operating segment covering treasury operations, acquisitions, capital markets and capital management.
• If MSCI reclassifies that segment as non‑operating, Strategy could be removed or watch‑listed in MSCI’s indexes.

Potential impact on Strategy

Strategy estimates that 86.9% of the total float‑adjusted market value of the six companies targeted by the screen is tied to its own market cap of roughly $23.9 billion, compared with $3.6 billion for the other five companies. Deletion from MSCI indexes could affect index‑linked portfolios that hold its shares.

Possible outcomes

1. MSCI withdraws or narrows the screen, reducing immediate deletion risk for Strategy and other Bitcoin‑focused firms.
2. MSCI revises the definition of operating assets, providing clearer treatment for corporate Bitcoin holdings.
3. MSCI proceeds unchanged, potentially leading to Strategy’s removal from affected indexes and setting a precedent for other Bitcoin treasury companies.

Next steps

MSCI will accept feedback until September 30 and plans to announce its decision by mid‑October, with any changes slated for the November 2026 Index Review. Strategy has also requested that MSCI place a legal hold on documents related to the methodology, preserving the record for possible future challenges.