Strategy, the biggest corporate buyer of bitcoin, is strongly opposing a new proposal from MSCI that would remove companies from its global stock indexes if more than 50% of their assets are held in digital assets like bitcoin. Strategy says this idea is “misguided,” “discriminatory,” and based on a misunderstanding of how bitcoin treasury companies actually work.

MSCI argues that digital-asset treasury companies (DATs) act more like investment funds than operating businesses. Strategy strongly disagrees. The company says it does far more than simply hold bitcoin. It builds bitcoin-backed credit products, runs a global software business, and actively manages its corporate treasury that uses its digital assets as “productive capital.”

Strategy wrote:

The company also says investors buy its stock because they trust its leadership and its business model—not just because it holds bitcoin.

“The proposal’s digital-asset-specific 50% threshold is discriminatory, arbitrary, and unworkable,” Strategy wrote. The company points out that many types of businesses focus heavily on one kind of asset.

For example, oil companies mainly hold oil, REITs hold real estate, and timber companies focus on timber. None of these companies is treated like an investment fund.

Strategy also says the rule would be impossible to apply fairly. Under U.S. accounting rules, bitcoin must be valued at its current market price, but companies in other countries may list bitcoin at its original cost. This means two identical companies could appear very different on paper just because of accounting rules, not because of their actual business.

Strategy warns that this could lead to “whipsaw” index inclusion and says the proposal could create a lot of instability. Because bitcoin prices move up and down so quickly, companies could fall in and out of MSCI’s indexes every time the price changes. The company says this would create “chaos and confusion” for investors and index providers.

If MSCI removes Strategy from important indexes, many investment funds that track those indexes would be required to sell the company’s stock automatically. Analysts estimate this could lead to $2.8 billion in outflows, possibly even more if other index providers copy MSCI’s rule.

Strategy’s stock has already dropped significantly as bitcoin prices have fallen. The company’s valuation is now almost equal to the value of its bitcoin holdings, showing how much pressure it is under.

Strategy also argues that the proposal goes against U.S. government policy toward digital assets. President Donald Trump has promoted bitcoin and digital-asset development through actions like creating a Strategic Bitcoin Reserve and expanding access to bitcoin in retirement accounts.

According to Strategy, removing DATs from major indexes would “undermine American competitiveness,” chill innovation, and potentially damage emerging digital-asset markets.

Strategy is urging MSCI not to rush the decision. The company says the digital-asset industry is still developing, and making major changes now could do more harm than good.

The company wrote, “MSCI should allow time for the digital asset industry and DATs to evolve and gain their footing before proposing broad-stroke rules and criteria.”