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 stated that 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 discussed the plan during an interview with the Schwab Network on Wednesday. He acknowledged the importance of indexes but described the proposal as misguided.
Comparison To Oil And Timber Firms
To illustrate his point, Le drew parallels with well-known firms in other industries. He mentioned that Chevron holds more than half of its assets in oil, Weyerhaeuser has a significant 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 further argued that blocking crypto-focused companies at this stage would hinder new sectors before they have an opportunity to develop. He likened it to advising telecom firms in the 1980s to cease building cell towers or telling AI firms three years ago not to invest in advanced computing labs.
Dispute Over Company Classification
Le also expressed concerns regarding another aspect of the MSCI plan. The proposal suggests that companies holding substantial crypto positions might exhibit characteristics similar to funds, rendering them ineligible for index inclusion. Le contended that this does not accurately reflect Strategy's corporate reality.
He pointed out that the company has been publicly traded since 1998, having been founded by Michael Saylor in 1989. Le stated that he has served as CFO since 2015 and is involved in daily operations, emphasizing that Strategy is a fully operating company under its legal structure. He argued that categorizing it closer to an investment fund would be an error.
Le's remarks were made on the same day Strategy released its formal letter to MSCI. The letter asserted that the proposal could potentially shift the index system's stance on crypto as an asset class rather than maintaining a neutral position.
The MSCI consultation remains open until December 31. MSCI intends to publish its decision on January 15, with any implemented changes scheduled to take effect in February.

