Proposal Seen as Misguided Approach to Classifying Digital Asset Treasury Firms
MSCI’s proposal to exclude companies holding more than half of their balance sheet in digital assets has sparked strong pushback, with Strategy CEO Phong Le arguing the move reflects a fundamental misunderstanding of how operating companies manage core assets.
The index provider is currently consulting on whether digital asset treasury companies (DATs) with over 50% of their assets in crypto should be barred from inclusion. Le says the logic behind this approach is inconsistent, comparing it to removing Chevron for holding oil reserves or omitting major real estate and timber firms for owning the very assets that define their business models.
In an interview this week, Le called the proposal “misinformed and misguided”, warning that it risks discouraging innovation in a rapidly expanding financial category. He noted that companies across traditional sectors routinely maintain large concentrations of core assets, yet face no similar penalties.
A key concern raised by Strategy is the suggestion that DATs resemble investment funds rather than operating companies. Le emphasized that Strategy has been a functioning operating enterprise for decades, stating that the firm is “100% an operating company legally from a corporate structure.”
Strategy also submitted a formal letter to MSCI, arguing the proposal would effectively bias the index against crypto exposure instead of serving as a neutral market standard.
The consultation window remains open until Dec 31 with final decisions expected on Jan 15 and any index adjustments scheduled for February. Industry observers note that MSCI typically advances proposals it places into consultation, suggesting real momentum behind the potential rule change.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.