Strategy Calls For Withdrawal Of MSCI’s Exclusion Plan For Digital Asset Treasury Companies
NegativeCryptocurrency
- Strategy, formerly known as MicroStrategy, has formally opposed MSCI's proposal to exclude digital asset treasury companies from its indexes, arguing that the threshold of 50% digital assets on balance sheets is misguided and could harm the broader cryptocurrency market. The firm, led by Michael Saylor and CEO Phong Le, emphasizes the need for fair treatment of digital asset companies in index eligibility criteria.
- This development is significant for Strategy as it highlights the potential negative impact on its operations and stock performance, with estimates suggesting that MicroStrategy's stock could decline to $150 due to the proposed exclusion. The firm is advocating for its inclusion in MSCI's indexes to maintain its market position and operational flexibility.
- The pushback against MSCI's proposal reflects a broader concern within the cryptocurrency sector regarding the treatment of companies heavily invested in digital assets. The ongoing debate emphasizes the need for consistent and fair index standards, as other entities, including the Bitcoin Coalition, have also expressed opposition to exclusionary measures that could destabilize the market and hinder innovation.
— via World Pulse Now AI Editorial System
