Strive, the fifth-largest Bitcoin treasury, has put forth a strong and critical case against MSCI’s proposal to axe crypto treasuries from the global index.
In its feedback on the proposal, Strive acknowledged the 2026 framework as a “material improvement” over the 2025 one (which directly targeted crypto treasuries for exclusion).
The current proposal asks a better question: when does a public corporation cease to be an operating company and become, in economic substance, an investment vehicle? We think MSCI is now asking the right question but has yet to supply a rule capable of answering it.
However, Strive asked MSCI to define the meaning of “operating asset.” The firm insisted that they (BTC treasuries) fit the profile of an “operating company,” citing Strategy’s digital credit products tied to BTC reserves.
Companies that issue digital credit belong on the operating side of that line. They use balance sheet assets as inputs, apply continuing financial and risk-management processes to them, and produce differentiated financial claims with payment and risk characteristics the underlying assets.
Will MSCI Index keep Bitcoin treasuries?
Strategy’s list of preferred stocks, including STRC, STRF, STRK, and STRD, earn bi-monthly and quarterly dividends. In fact, there is a proposal to have the last four offer daily interest. The digital credit is backed by Strategy’s massive BTC and cash reserves to ensure uninterrupted yield payouts.
In fact, in case of foreseen shortfalls, Strategy has opted to sell part of its BTC to replenish its cash reserves. Similarly, Strive said it runs the same playbook with over $2B worth of BTC as reserve.
For Strive, this fits an “operating company” just like any insurer, bank, or other financial firms. Interestingly, even TD Securities made a similar argument against the MSCI proposal and posed,
The primary product is not Bitcoin itself, but rather differentiated forms of Bitcoin-backed exposure tailored to varying investor preferences for risk, duration, leverage, yield and liquidity. That strikes us as a corporate activity, not a passive one.
For MSCI, companies that buy and hoard assets (including crypto assets) such as Strategy are “non-operating” companies that should be axed from its index. The index provider proposed this last month and opened a feedback window set to close by the end of September.
MSCI plans to give final results on the same by mid-October and rebalance the index by November, if the changes are adopted.
However, Strive insists that it should define “operating assets” and at least offer a “future qualification path” for the firms to make needed adjustments.
It’s unclear whether MSCI will fold and withdraw the proposal next month. However, the decision would massively affect the crypto treasuries segment.
Final Summary
- Strive wants MSCI to define “operating assets,” defending that Strategy and the digital credit model constitute an “operating” company.
- MSCI will finalize its decision on axing crypto treasuries in mid-October after reviewing feedback from players.
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