MicroStrategy sends sharp warning letter to MSCI

MicroStrategy, the Bitcoin treasury firm led by billionaire tech leader Michael Saylor, has formally written to Morgan Stanley Capital International (MSCI) regarding the potential exclusion from the MSCI USA Index. MicroStrategy, founded in 1989 as a software company, began acquiring Bitcoin amid the coronavirus pandemic in 2020 and has since amassed 660,624 BTC, establishing itself as the world's largest corporate Bitcoin treasury. However, the company's significant holdings of digital assets on its balance sheet have drawn scrutiny, particularly following the recent crypto market downturn.

Implications of MSCI Index Exclusion for MicroStrategy

JPMorgan Chase had previously warned last month that MicroStrategy risks delisting from major equity indices, including the MSCI USA Index. The MSCI USA Index serves as a prominent stock market benchmark, tracking the performance of large-cap and mid-cap U.S. companies and representing approximately 85% of the U.S. stock market. MicroStrategy's net asset value (mNAV), a metric that calculates the ratio of enterprise value to Bitcoin per-share value, has recently approached a 1:1 ratio. This indicates that the company's stock is now trading almost precisely at the value of its Bitcoin holdings, with a minimal premium.

MSCI has been evaluating whether public companies with over 50% of their balance sheet assets dedicated to digital assets should remain in traditional stock indices. If this proposal is implemented, MicroStrategy could be the first company affected by this index re-evaluation. Reports indicate that both MSCI and MicroStrategy are currently engaged in discussions concerning this developing situation.

MicroStrategy Calls MSCI's Proposal 'Misguided'

On December 10, Michael Saylor, founder and executive chairman of MicroStrategy, shared a letter written on behalf of the company to the members of the MSCI Equity Index Committee. In the letter, MicroStrategy characterized the proposal to exclude companies with balance sheets consisting of more than 50% digital assets as "misguided." The company warned that such a decision could have "profoundly harmful consequences."

MicroStrategy has submitted its response to MSCI’s consultation on digital asset treasury companies. Index standards should be neutral, consistent, and reflective of global market evolution. Read our letter and share your support: https://t.co/yiPRYyw5Lk

— Michael Saylor (@saylor) December 10, 2025

MicroStrategy criticized MSCI for classifying digital asset treasuries like MicroStrategy as investment funds rather than operating companies. The company stated, "MicroStrategy is an operating business that actively uses the Bitcoin it holds to create returns for shareholders." It further explained that, unlike an investment fund, MicroStrategy possesses the operational flexibility to adapt its strategies as Bitcoin technology evolves.

MSCI's 50% Threshold Deemed 'Discriminatory, Arbitrary, and Unworkable'

In its correspondence, MicroStrategy described the 50% threshold on digital asset holdings as "discriminatory, arbitrary, and unworkable." The company argued that other industries, such as oil, timber, gold, and real estate, similarly concentrate their holdings in a single asset type. MicroStrategy's letter raised concerns about the neutrality of MSCI's indices, given the proposal's allegedly discriminatory approach towards a specific asset type.

Furthermore, the Bitcoin proxy suggested that MSCI's proposal would ultimately stifle investment in the burgeoning digital asset industry, which runs counter to the pro-innovation policies of the current U.S. administration.

Leading Bitcoin Treasury Urges MSCI to Reject Proposal

MicroStrategy implored MSCI to reject the proposal to exclude digital asset treasuries in a "rushed and reactionary" manner. The company asserted, "MSCI should allow time for the digital asset industry and DATs to evolve and gain their footing before proposing broad-stroke rules and criteria." MicroStrategy indicated that if MSCI remains inclined to differentiate digital asset treasuries, it should engage in further consultations with the industry.

The letter, co-signed by Saylor and MicroStrategy President and CEO Phong Le, concluded with an appeal for MSCI to adopt a more prudent approach by remaining "neutral" and allowing market forces to determine the trajectory of digital asset treasuries.

At press time, Bitcoin was trading at $91,960.10, showing little change over the past day. Concurrently, MSTR stock was trading at $186.46, down 1.34% on the day.