MicroStrategy Fights Back Against MSCI Exclusion: Open Letter Defends Bitcoin Business Model

MicroStrategy Fights for Continued Inclusion in MSCI Indices

MicroStrategy, the company holding the world's largest Bitcoin reserve, has published a twelve-page open letter to index provider MSCI to avert the threatened exclusion from its Global Investable Market Indexes ^[1]. The index provider plans to exclude companies where digital assets account for more than 50 percent of total assets ^[1].

With its over 660,000 BTC, MicroStrategy clearly exceeds this threshold ^[1][3]. Executive Chairman Michael Saylor and CEO Phong Le argue in the letter submitted on December 10 that so-called Digital Asset Treasury Companies (DATs) should be classified as operating companies rather than investment funds ^[2].

Core Arguments Against the Proposed Rule

MicroStrategy calls the planned changes "misguided" and warns of "serious consequences" ^[1]. The company emphasizes that DATs actively utilize digital assets and offer productive financial instruments rather than functioning merely as passive investment vehicles ^[1].

"Investors who purchase MicroStrategy's common stock are not simply gaining pure exposure to Bitcoin," the letter states. "Instead, MicroStrategy investors are investing in MicroStrategy's management team, financial expertise, and ability to benefit from future technological innovations that Bitcoin promises" ^[2].

The company points out that comparable concentrations in other industries – such as oil, gold, real estate, or media companies – have historically never led to exclusion from MSCI indices ^[1][4].

Feared Capital Outflows in Billions

MicroStrategy warns of significant market consequences. According to an analysis cited in the letter, capital outflows of up to $2.8 billion could occur if index providers implement the rule ^[1]. Other forecasts suggest even over $8 billion if additional index providers follow suit ^[1]. US banking giant JPMorgan had already warned of such a scenario in November ^[1].

Bitcoin mining companies holding large portions of their assets would also be affected by the rule ^[1][4]. MicroStrategy also criticizes that strong Bitcoin price fluctuations could lead to repeated additions and removals from indices, creating unnecessary administrative burden ^[2].

Conflict with US Government Policy

The company argues that the proposed exclusion would be incompatible with the Trump administration's vision of making the United States a Bitcoin superpower ^[2]. "The MSCI proposal would effectively deny access to companies investing in digital assets, thereby automatically withdrawing billions in capital from this sector," the letter states ^[2].

MicroStrategy accuses MSCI of deviating from its mandate to represent the market as completely and neutrally as possible ^[2]. The company is requesting an extension of the consultation period, which runs through December 31, and a revision of the proposal ^[2].

MSCI Justifies Position with Risk Concerns

MSCI argues, in turn, that crypto-treasury companies exhibit characteristics of investment funds rather than producing goods and services ^[3]. The index provider points to the lack of uniform valuation methods for cryptocurrencies and potential correlation risks, in which index performance could mirror crypto markets ^[3].

MSCI's final decision is expected on January 15, 2026 ^[2]. MicroStrategy has much at stake: the company added another 10,000 Bitcoin to its balance sheet just on Monday ^[1]. The average purchase price is approximately $74,500 per coin ^[1].