Strategy CEO Challenges MSCI Plan to Block Crypto Heavy Firms From Major Stock Indexes

Strategy CEO Phong Le has pushed back against a proposal from MSCI that could bar companies with more than half of their assets in crypto from key stock indexes. He said the move would treat digital assets differently from long established sectors that rely on core commodities.

MSCI began a public consultation in October on whether to exclude Bitcoin treasury companies, also called digital asset treasury firms, from its indexes if crypto makes up most of their balance sheet. Le spoke about the plan during an interview with the Schwab Network on Wednesday. He noted that he respects the role indexes play but called the idea misguided.

Comparison To Oil And Timber Firms

To make his point, Le drew parallels with well known firms in other fields. He said Chevron holds more than half of its assets in oil, Weyerhaeuser has a large portion tied to wood, and Simon Property Group holds broad real estate assets. 

None of these companies face removal from MSCI indexes simply for holding the core resources that define their business.

Le added that blocking crypto focused companies at this stage would slow new sectors before they have a chance to grow. He compared it to telling telecom firms in the 1980s to stop building cell towers or telling AI firms three years ago not to invest in advanced computing labs.

Dispute Over Company Classification

Le also raised concerns about another part of the MSCI plan. The proposal states that companies holding large crypto positions might behave like funds, which would make them ineligible for index placement. Le argued that this does not match Strategy’s corporate reality.

He noted that the company has been public since 1998, with Michael Saylor founding it in 1989. Le said he has been CFO since 2015 and works across daily operations, pointing out that Strategy is fully an operating company under its legal structure. He argued that placing it in a category closer to an investment fund would be an error.

Le’s remarks came on the same day Strategy released its formal letter to MSCI. The letter argued that the proposal could tilt the index system away from crypto as an asset class instead of maintaining a neutral position.

The MSCI consultation remains open until Dec 31. MSCI plans to publish its decision on Jan 15, with any changes set to take effect in February.