• MSCI plans to exclude crypto treasury corporations from main indexes faces technique challenges
• The letter states that DAT corporations don’t function as passive Bitcoin funds.
• Technique warns of danger of compelled outflow after MSCI guidelines new $962.7 million BTC buy

Technique has submitted a proper response to the MSCI Fairness Index Committee after the index supplier proposed eradicating corporations that maintain digital belongings price greater than 50% of their complete belongings.

Technique to reject MSCI Cryptocurrency Treasury proposal

The letter, signed by Chairman Michael Saylor and CEO Von Leh, asserts that the Digital Asset Treasury Firm (DAT) operates as an lively enterprise reasonably than a easy Bitcoin monitoring automobile. The technique makes use of Bitcoin as productive company capital reasonably than a passive retailer of worth, executives wrote.

The corporate claimed buyers are shopping for into its enterprise mannequin, which incorporates Bitcoin-backed credit score merchandise, an aggressive company treasury program, and a long-running world analytics software program division.

Associated: Michael Saylor bets on Bitcoin-backed credit score after technique’s greatest Bitcoin buy of 2025

In response to the technique, DAT isn’t a Bitcoin fund however an working firm.

Technique added that MSCI’s proposal misrepresents DAT’s primary construction and creates an inaccurate image of corporations like MSTR.

Executives mentioned their firm isn’t an funding fund as a result of it’s organized as a conventional enterprise firm, doesn’t have obligations just like an ETP, and doesn’t present fund-like tax remedy for shareholders.

“Technique was based greater than 35 years in the past as an progressive software program firm and at the moment is a world software program enterprise that generates lots of of tens of millions of {dollars} in annual income. Its origins and historical past additional display that an funding in Technique is extra than simply an funding in Bitcoin.”

Methods declare MSCI guidelines unfairly goal crypto treasury corporations

Technique warned that the proposed 50% requirement was unfeasible. Many corporations within the oil, timber, mining, actual property and power industries maintain concentrated asset positions with out the chance of index exclusion. Methods says the rule would unfairly goal solely corporations that use cryptocurrencies closely.

The corporate additionally claimed that the proposal comes at a time when the federal government underneath President Donald Trump is rising its funding in cryptocurrencies. The letter warned that eradicating DAT might lead to compelled outflows price billions of {dollars}.

In the meantime, Technique continues so as to add BTC to its stability sheet. In response to current filings, the corporate bought 10,624 BTC from December 1st to December seventh for a complete of $962.7 million, at a mean value of $90,615 per coin. In response to a report from Barron’s, the corporate at present holds greater than $60.6 billion in Bitcoin.

The corporate financed the acquisition largely by an on-market inventory sale program. Apparently, this buy got here after a quiet interval the place Technique added simply 130 BTC between November seventeenth and November thirtieth.

Associated: Saylor “Walks the Stroll” in Bitcoin-Backed Financial institution Pitch. Treasury swells to 660,624BTC