Strive Asset Management is challenging MSCI's proposal to blacklist companies with significant Bitcoin holdings, arguing the move is "unworkable" and deviates from index neutrality. In a letter to MSCI CEO Henry Fernandez, Strive CEO Matt Cole stated that the proposed exclusion of companies whose digital asset holdings exceed 50% of their total assets is "unjustified, overbroad and unworkable". Strive, a Nasdaq-listed structured finance company, currently holds over 7,500 BTC, making it the 14th-largest corporate Bitcoin holder.
MSCI, a major index provider, is considering reclassifying companies whose primary business involves holding Bitcoin or other digital assets as "funds" rather than operating companies. This reclassification could lead to their removal from key benchmarks. The decision is expected to be announced on January 15, 2026, ahead of the February index review.
Strive contends that the 50% threshold is arbitrary and fails to recognize that many Bitcoin-heavy companies also operate substantial businesses in sectors like AI data-center infrastructure and structured finance. Cole highlighted that major Bitcoin miners, such as MARA Holdings, Riot Platforms, and Hut 8, are diversifying into providing power and infrastructure for AI computing. He argued that these companies are well-positioned to meet the rising demand for power in the AI sector, and excluding them would curtail client participation in a rapidly growing part of the global economy.
The potential exclusion could significantly impact digital asset treasury firms. JPMorgan analysts previously warned that Strategy, a Bitcoin treasury firm listed in the MSCI World Index, could face $2.8 billion in passive outflows if MSCI proceeds with the proposal. Some analysts believe the potential impact is already reflected in Strategy's share price.
Strive also raised concerns about inconsistent outcomes across different jurisdictions due to varying accounting rules for digital assets. Under U.S. GAAP, companies must mark digital assets to fair value each quarter, while IFRS allows them to hold them at cost. This could lead to two companies with identical Bitcoin exposure being treated differently. To avoid these issues, Strive suggests that MSCI offer optional "ex-digital-asset treasury" index variants for clients who wish to exclude such companies.
Strive's stance is that MSCI should "let the market decide" how to treat companies with large Bitcoin holdings, arguing that creating a digital-asset-specific rule would hard-code an investment judgment into benchmarks that are meant to be neutral. The firm advocates for market-driven inclusion of Bitcoin-holding companies in passive investments.
