Strategy challenges MSCI proposal targeting digital asset treasury firms

Strategy has formally opposed MSCI’s proposed screening rules for companies with large non-operating asset holdings, arguing that the methodology unfairly targets digital asset treasury firms and could push companies including Strategy out of major global equity indexes. Summary Strategy called MSCI’s proposed screening rules discriminatory and argued they unfairly target digital asset treasury companies. Companies with operating assets below 50% of total assets would face five additional tests, with four failures potentially making them ineligible for MSCI indexes. A May simulation identified Strategy, Metaplanet and Yellow Cake for possible deletion under the proposed methodology. Strategy said MSCI’s operating and non-operating asset distinction is not defined under U.S. GAAP, IFRS or existing U.S. securities law. MSCI is accepting feedback until Sept. 30, with a decision expected by Oct. 16 and any changes taking effect in December. In a Monday letter signed by Executive Chairman Michael Saylor and CEO Phong Le, Strategy called MSCI’s proposal “discriminatory, arbitrary, and misguided” and asked the index provider to withdraw it. “If adopted, the proposal would have no meaningf...