Strategy: MSCI's proposed 50% bitcoin threshold risk triggers "severe volatility" in the index and conflicts with US innovation policy

ChainCatcher reported that Strategy sent a letter to the MSCI Equity Index Committee, urging it to abandon a proposal. The proposal aims to prohibit companies with digital asset holdings exceeding 50% of their total assets from being included in its global equity benchmarks. Strategy warned that such a move would cause significant index volatility and contradict U.S. government policies promoting digital asset innovation.

Strategy argued that if bitcoin prices fluctuate or accounting standards differ, companies holding bitcoin assets would "enter and exit" major indices dramatically, creating chaos for index providers and investors. MSCI countered that digital asset treasury (DATs) companies like Strategy and BitMine are more akin to investment funds than traditional operating businesses.

Strategy pointed out that since IFRS-reporting companies can value bitcoin at cost, while U.S. GAAP requires quarterly fair value marking, the rule is difficult to apply consistently. Strategy is the largest public bitcoin holder, holding 660,624 BTC, valued at nearly $61 billion. JPMorgan analysts estimate that if Strategy is removed, it could face about $2.8 billion in passive outflows. MSCI is expected to make a final decision by January 15.