The post MicroStrategy Slams MSCI’s “Discriminatory” 50% Rule, MSTR Tanks 40% appeared on BitcoinEthereumNews.com.

Key Insights Strategy, formerly MicroStrategy, submitted a 12-page letter on December 10 challenging MSCI’s proposal to exclude digital asset treasury companies from its Global Investable Market Indexes. The company argued that it operates as an active business rather than a passive fund, comparing its model to those of banks and insurance companies. MicroStrategy warned that the exclusion would discriminate against digital assets and conflict with the Trump Administration’s pro-crypto policies. Strategy (formerly MicroStrategy) mounted an aggressive defense of its business model in response to MSCI’s proposal to exclude companies with digital asset holdings exceeding 50% of total assets from major equity indexes. The December 10 letter, signed by Executive Chairman Michael Saylor and CEO Phong Le, rejected MSCI’s characterization of digital asset treasury companies as investment funds and warned the exclusion would stifle innovation while conflicting with federal policy. Operating Company, Not Investment Wrapper Strategy’s central argument centered on its operational structure. The company insisted it actively uses Bitcoin holdings to create returns rather than passively holding the asset. Strategy provides Bitcoin-backed digital credit instruments, including preferred stock with varying dividend rates, seniorities, and credit protections. The company uses proceeds from these instruments to acquire additional Bitcoin, capturing the spread between financing costs and Bitcoin returns. The letter drew parallels to centuries-old business models. Strategy compared its approach to banks and insurance companies that hold concentrated asset portfolios and package derivatives backed by those holdings. The company noted that investors purchasing Strategy stock buy exposure to management’s ability to leverage Bitcoin reserves rather than Bitcoin price exposure alone. Topics discussed on the letters | Source: Strategy Additionally, the document stressed that share prices had historically traded at multiples above the underlying Bitcoin value to support its argument. Strategy pointed to its corporate structure as proof of operating company status. The…

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Filed under: News - @ December 11, 2025 5:26 am