Michael Saylor, executive chairman of Strategy, has responded to the ongoing MSCI index debate, asserting that his company’s commitment to Bitcoin remains unchanged. In a recent post on X, Saylor emphasized that index classifications do not define the company’s vision or operations. He made it clear that Strategy is focused on building a sustainable, long-term business model based on Bitcoin, rather than being concerned with short-term market fluctuations or index listings.
The MSCI is currently reviewing whether companies like Strategy, which hold substantial reserves in cryptocurrency, should remain on major indices. This includes firms that have over 50% of their reserves in Bitcoin. The MSCI considers these companies more similar to investment funds, rather than traditional businesses. However, Saylor argued that this view does not accurately reflect Strategy’s operations. He clarified that his company is not an investment fund or holding company, but a publicly traded firm with a $500 million software business.
Bitcoin as Productive Capital
Saylor continued to defend the company’s unique approach to utilizing Bitcoin as productive capital. Strategy has not only invested heavily in Bitcoin but has also innovated by creating digital credit securities and launching new financial products. This year, the company has raised over $7.7 billion through five public offerings of these digital securities. The most recent offering raised $704 million to further expand their Bitcoin holdings. Strategy has also introduced Stretch, a Bitcoin-backed treasury credit instrument that provides variable monthly USD yields to both institutional and retail investors.
With MSCI expected to make a final decision by mid-January, the possibility of being removed from major indices looms over Strategy. If MSCI classifies Strategy as an investment fund or trust, it could face removal from benchmarks like the MSCI USA or MSCI World indices. This uncertainty has impacted Strategy’s stock, with shares of MSTR dropping almost 2% on the day, and over 11% in the past week.
Innovative Model Sets Strategy Apart
Saylor stressed that no passive investment vehicle or holding company could replicate Strategy’s approach. Unlike traditional funds or trusts, which primarily hold assets, Strategy is actively creating and managing its Bitcoin-backed financial instruments. The company’s unique model allows for continuous innovation in both capital markets and software, setting it apart from other market participants.