Michael Saylor and CEO Phong Le sent an open letter to global index provider MSCI urging the withdrawal of its planned screening rule for non-operating companies. The screening proposal, open since August 2026, targets issuers whose operating assets fall below a 50% threshold of total balance sheet assets. MSCI uses five evaluation indicators to gauge a company’s status: operating asset intensity, expenditure levels, cash flow conditions, fair value change dynamics, and the entity’s degree of reliance on external financing sources.
Repackaging the January Rule
MicroStrategy called the draft policy discriminatory, arbitrary, and misguided. The company argued that MSCI’s draft proposal is merely a repackaged version of an older proposal regarding a 50% crypto holding cap that was previously rejected in January.
Based on internal calculations, Saylor’s letter emphasized that only three public crypto entities fall under the target criteria of this screening. MicroStrategy dominates this small group, accounting for 87% of their combined float-adjusted market capitalization. Recognizing the potential for unilateral rule changes, Saylor demanded that MSCI preserve all internal documents related to the development of this index screening policy.
JPMorgan investment bank analysts estimate that the impact of being excluded from MSCI indexes could trigger $2.8 billion in capital outflows. This capital flight could rise to $11.6 billion if other global index providers adopt similar screening standards. Currently, passive fund instruments tracking the GIMI index hold a 3.1% stake in MicroStrategy’s total outstanding common shares.
Bitcoin Reserves as an Operating Segment
To address the new screening criteria, MicroStrategy cited its second-quarter financial report filed with authorities on August 3 as its main argument. The filing designated the company’s Bitcoin treasury operations as a separate, standalone operating segment. Through this new reporting format, the company stated that it does not trigger violations for either the expenditure criteria or the fair value change criteria proposed by MSCI.
MicroStrategy currently holds 845,050 BTC. Its latest purchase was completed just last week, acquiring 4,603 BTC for a total of $369.7 million at an average purchase price of $80,318 per coin.
The public consultation period for MSCI’s screening draft will officially close on September 30. The final evaluation announcement is scheduled for release on October 16, followed by the implementation of the new rules in November. For institutional investors, next month’s deadline will confirm whether MicroStrategy’s status across global benchmarks remains secure or if billions of dollars in index basket allocations must change hands.
Reported via Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
