Global index provider MSCI has proposed a rule change that could reclassify companies holding more than 50% of assets in cryptocurrencies as funds rather than operating businesses.
The proposal has raised alarm across markets, with critics warning it could penalise firms that adopt Bitcoin (CRYPTO:BTC) as a treasury asset.
Supporters of corporate Bitcoin adoption argue that capital allocation has always been a core responsibility of management under free-market principles.
Companies have historically diversified into cash, commodities, real estate and foreign currencies without facing index exclusion.
The MSCI proposal could see firms like Strategy removed from major global equity indices despite maintaining active operating businesses.
Market observers say the change would effectively redraw classification rules to discourage unconventional balance sheet strategies.
Strategy’s heavy exposure to Bitcoin has drawn scrutiny, particularly due to its use of leverage alongside a volatile asset.
Critics argue that risk alone does not transform an operating company into an investment fund.
Recent market volatility has intensified concerns, with index eligibility becoming a growing factor in share price sensitivity.
There could be chaos and confusion if exclusions are enforced.
Michael Saylor said.
Analysts stress that investors willingly choose exposure to companies with concentrated Bitcoin strategies.
Skepticism about risk profiles, they argue, does not justify altering long-standing index classification standards.
Holding Bitcoin as a treasury reserve is increasingly viewed as a hedge against inflation and monetary debasement.
MSCI’s move has been described as a form of private-sector gatekeeping rather than a neutral methodological update.
Passive funds tracking MSCI indices could be forced into large-scale sell-offs if exclusions occur.
Such mechanical selling could inject volatility unrelated to company fundamentals.
The potential January decision has heightened uncertainty across global equity markets.
Strategy’s recent retention in the Nasdaq-100 has been cited as evidence of market-driven inclusion.
Critics warn that MSCI’s approach risks shielding legacy financial frameworks from digital asset disruption.
Traditional finance has often resisted innovation, from the early internet to modern fintech.
Bitcoin’s growing role as a store of value has intensified tensions between new assets and established systems.
Observers say index rules are beginning to resemble regulatory tools rather than market benchmarks.
Advocates argue that free markets depend on choice, competition and transparent risk pricing.
MSCI now faces pressure to adapt its frameworks to evolving corporate finance practices.
Industry voices insist that innovation will continue regardless of index inclusion decisions.
At the time of reporting, Bitcoin price was $88,386.49.