Strategy (MSTR) Survives Nasdaq 100 Reshuffle — Can It Endure an MSCI Ban?

Investors intimately watched the Nasdaq 100's yearly reconstitution to spot if Strategy (NASDAQ:MSTR) -- the largest firm holder of Bitcoin (CRYPTO:BTC) -- would suffer its spot owed to its bitcoin-heavy equilibrium sheet. On Friday, Nasdaq announced the changes, and Strategy survived the cut, avoiding removal during a reshuffle that dropped six companies and added six much that volition instrumentality effect connected Dec. 22.

In response, Executive Chairman Michael Saylor posted connected X: "The Bitcoin hoarding volition proceed until the complaining stops." The connection reflected bravado, adjacent though Strategy continues to look scrutiny. Just days earlier, Saylor and CEO Phong Le had sent a missive to MSCI (NYSE:MSCI) challenging its projected exclusion of crypto treasury firms.

MSCI is considering excluding companies whose integer plus holdings transcend 50% of their full assets from its Global Investable Market Indexes. It views these integer plus treasury companies (DATs) arsenic resembling concern funds alternatively than accepted operating businesses, blurring the lines successful equity benchmarks. they besides introduces hazard specified arsenic accrued volatility from crypto terms swings and the anticipation of forced income during downturns.

The connection aims to support "index purity" for halfway equity benchmarks, support accepted investors from excessive risk, and code the information that these firms lucifer concern vehicles. A determination is expected by January 15, 2026, with the determination taking effect successful February.

Last week, Saylor and Le submitted a 12-page missive to MSCI's Equity Index Committee opposing the rule. They argued DATs are operating companies, not funds, and called the connection discriminatory. The missive highlighted 5 main objections:

• DATs are operating businesses, not concern funds. They actively negociate assets to make returns via Bitcoin-backed securities and support operational flexibility, akin to lipid companies oregon REITs.

• The 50% threshold for integer assets is discriminatory, arbitrary, and unworkable. It unfairly targets 1 plus people portion ignoring concentrations successful others, specified arsenic lipid and existent estate, portion monitoring would origin scale instability due to the fact that of terms swings and accounting differences (GAAP vs. IFRS).

• The connection inappropriately injects argumentation judgments into indexing. MSCI should stay neutral and bespeak marketplace improvement without judging concern models.

• The connection conflicts with national strategy and chills innovation. It opposes U.S. pro-digital plus policies, perchance diverting superior and harming growth.

• If DATs are to beryllium treated differently, widen the review:  The reappraisal process is rushed and lacks a elaborate mentation of concerns.