Strive Fights MSCI Proposal to Exclude Bitcoin-Heavy Firms

Industry Backlash Mounts Against the MSCI Proposal

A major financial index provider is facing growing opposition from the industry. Strive Asset Management publicly attacked a new MSCI proposal this week. The plan would kick out companies with significant digital-asset reserves from key benchmarks. 

Specifically, it targets firms whose cryptocurrency reserves top out above fifty percent of total assets. Strive, one of corporate America's most visible Bitcoin holders, believes that rule fundamentally misfiring. The firm wrote a letter to MSCI's chief executive Henry Fernandez. It implores the index giant to rethink this potentially disruptive change.

The MSCI proposal may provoke significant, unintended outcomes. JPMorgan analysts consider that one company in particular could see billions lost through passive fund outflows. This selling pressure would occur independently of business trends. The benchmark is supposed to be a reflection of the market, not an active investment decision. Investors themselves should determine which balance sheets they prefer.

Industry Backlash Against MSCI Proposal Grows

Critics also point to the inconsistent application of the rule across the globe. Accounting treatment for digital assets ranges dramatically from one jurisdiction to another. US rules call for quarterly fair-value markups of Bitcoin holdings. International norms often enable companies to carry assets at original cost. Two otherwise identical firms could easily get very different index treatment. This would undermine the fairness and reliability that global benchmarks provide.

Furthermore, the proposal misunderstands modern corporate strategy. Many targeted companies are not purely cryptocurrency speculators. Leading Bitcoin miners now pivot excess power into artificial intelligence projects. They provide vital data center infrastructure for the computing boom. Excluding them would wall off a crucial growth sector from mainstream investors. special rule for digital assets seems unfairly punitive and selective.

A Call for Optional Solutions over Blanket Bans

Strive urges a more sophisticated response from the index provider. It recommends that MSCI develop optional "ex-digital-asset treasury" variants. This already exists for sectors such as tobacco and fossil fuels. Asset managers that wish to avoid Bitcoin-heavy companies could use these customized benchmarks. 

Crucially, this leaves choice for the wider investment universe. Other funds could retain exposure to this groundbreaking part of the market. This approach is consistent with established methodology and investor freedom. The decision now lies solely with MSCI, and it is expected to come in mid-January 2026. 

The result will be a signal of how traditional finance views the maturation of Bitcoin. The refusal of the proposal will firmly establish digital assets as a valid treasury strategy. Approval might brand corporate adoption with a stigma, impeding investment flows. The financial world is looking on now with this very important deadline at hand.