Strategy opposes MSCI's proposed index screening and may be removed from the Global Investable Market Index

Odaily News: Bitcoin treasury company Strategy Inc. requested MSCI on August 31 to withdraw the eligibility test that could result in its removal from the Global Investable Market Index (GIMI). Executive Chairman Michael Saylor and CEO Phong Le stated that the methodology is discriminatory, arbitrary, and misguided.

MSCI proposes a two-stage screening process, where companies with operating assets exceeding 50% of total assets may retain their eligibility. Those that fail may be disqualified if they trigger at least four of the five financial metrics. Simulations show that Strategy, Metaplanet, and Yellow Cake could be removed from the index, with Strategy involving a market capitalization of approximately $23.93 billion.

Strategy stated that neither U.S. GAAP nor IFRS distinguishes between operating and non-operating assets in the manner proposed by MSCI and classifies its bitcoin treasury business as a separate operating segment. The company also has approximately 1,500 employees, a software business with annual revenue nearing $500 million, and issues bitcoin-backed credit instruments. The MSCI consultation ends on September 30, with a decision expected to be announced on October 16. (Bitcoin.com News)