Bitcoin treasury firm Strategy has urged Morgan Stanley Capital International to withdraw a proposal that would exclude digital asset treasury companies from its investment indexes. The company, formerly known as MicroStrategy, says the plan would force billions in liquidations and hurt innovation in the cryptocurrency sector.
What Happened: Opposition Letter
Strategy sent a letter signed by Michael Saylor and CEO Phong Le challenging MSCI's proposed rule to remove firms holding more than 50% digital assets from its indexes.
The company called the threshold "discriminatory and arbitrary."
Strategy compared its business model to real estate investment trusts and oil companies, which maintain concentrated holdings without being classified as investment funds. The firm argued digital asset treasury companies deserve similar treatment.
The letter noted MSCI correctly categorizes REITs and energy companies despite their focused portfolios.
Strategy said the proposed rule would require new methods for measuring balance sheet concentration across different accounting standards.
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Why It Matters: Market Impact
JPMorgan analysts estimate Strategy alone faces potential liquidations of $2.8 billion if the rule takes effect. The exclusion could force Bitcoin miners to sell holdings immediately rather than maintain them as business strategy.
The company warned the proposal stems from misconceptions about digital asset treasury companies' operations. Strategy said excluding these firms would limit pension plans and 401(k)s from accessing digital assets, redirecting capital away from the sector.
Strategy's stock, ticker MSTR, traded at $185 with minimal movement since the previous session as crypto prices consolidated.
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