Bitcoin Treasury Strategy Responds to MSCI's Potential Index Removal
Bitcoin Treasury Strategy has publicly stated that it “doesn’t need” Morgan Stanley Capital International (MSCI) following the index provider's announcement of a possible removal of the company from its Global Investable Market Indexes (GIMI). MSCI is currently consulting on a proposal to classify companies as “Non-Operating Companies,” which would exclude firms primarily known for holding Bitcoin, like Strategy, from major indexes.
MSCI's proposal has raised concerns as it could lead to an estimated $2.8 billion in passive selling if adopted. The consultation, which includes other companies like Metaplanet and Yellow Cake, is open until September 30, with MSCI indicating that the outcome may vary based on feedback.
In a statement on X, Strategy criticized MSCI's approach, arguing that index providers should reflect market realities rather than dictate corporate asset allocations. The company emphasized that Bitcoin does not require MSCI's endorsement to thrive.
As of May 2026, both Strategy and Metaplanet met the criteria for potential removal under MSCI's proposed rules. If implemented, this could trigger forced selling by index-tracking funds, impacting the companies' market presence.
Strategy, formerly known as MicroStrategy, has been a significant player in the Bitcoin market, having invested approximately $63.3 billion in the cryptocurrency since August 2020. The company has recently altered its strategy, selling Bitcoin and focusing on cash reserves, which may further influence its standing in the index.
Updated 19:03 UTC
Latest Developments in Bitcoin Treasury Strategies
- KULR Technology Group has exited Bitcoin mining and is selling its BTC holdings to refocus on its core battery technology business.
- The company recorded a non-cash Bitcoin fair-value loss of $10.59 million in Q2, contributing to a total net loss of $21.97 million.
- KULR's revenue fell by 43% to $2.08 million in the same quarter, with an operating loss widening to $11.2 million.
- As of June 30, KULR held 1,091.69 BTC valued at $63.92 million, significantly down from a cost basis of $109.8 million.
- After selling approximately 333 BTC for $21.5 million, KULR's Bitcoin position decreased to about 760 BTC.
- The company dismantled its mining operations, terminating contracts and eliminating around $2.1 million in remaining commitments.
- KULR's mining revenue dropped to approximately $606,000, down from $1.12 million a year earlier, despite an increase in production over the first half of the year.
Updated 21:30 UTC
New Insights on Bitcoin Treasury Strategies
Matt Cole, CEO of Strive, criticized MSCI's updated framework for failing to acknowledge Bitcoin treasury operations as legitimate business activities. His response, posted on August 14, highlights concerns over how companies with significant digital asset holdings are classified.
In late 2025, MSCI proposed a plan that would exclude companies from its indices if over 50% of their balance sheet consisted of digital assets. However, after industry backlash, MSCI opted for a broader consultation instead of implementing the exclusion.
Cole argues that companies actively managing Bitcoin treasuries are engaging in real business activities, contrasting them with firms that merely hold Bitcoin as a passive investment. This classification has significant implications for whether these companies are included in major financial indices, affecting their market presence and investment flows.
Since 2023, Cole has been leading Strive, which has established a notable Bitcoin treasury and employs various financial instruments to support its digital asset strategy. He believes that companies actively deploying capital market strategies to manage Bitcoin positions resemble traditional corporate treasury operations.
Updated 22:00 UTC
New Insights on Bitcoin's Market Behavior
Bitcoin has experienced a significant decline from its peak of approximately $126,080 in October, currently trading in the low-$60,000s, marking a nearly 50% drop.
According to VanEck, this downturn aligns with Bitcoin's historical four-year halving cycle, suggesting that such slumps are typical rather than exceptional.
VanEck's GEO framework indicates that two out of three signals are neutral, with ecosystem leverage showing constructive signs, hinting at potential early signs of a market bottom.
Research from CryptoQuant reveals that long-term Bitcoin holders are experiencing deeper unrealized losses compared to the broader market, a pattern observed at previous major cycle bottoms.
Despite these indicators, caution is advised as historical data shows that long-term holder metrics often drop to more severe negative levels before a true market bottom is reached.
Updated 01:30 UTC
New Facts on Bitcoin Treasury Strategy
- CIMG Inc. reported a working-capital deficit of $7.38 million as of June 30, despite holding 1,145.4 BTC valued at $67.19 million.
- The company has only $5,397 in cash against $9.25 million in current liabilities.
- CIMG's management is considering monetizing its Bitcoin holdings, but has warned about the volatility of the asset.
- The Bitcoin is self-custodied in segregated Safe Wallet addresses under a 3-of-3 multisignature arrangement, requiring approval from three separate signers for any transfer.
- CIMG's loss attributable to the company increased to $10.49 million for the June quarter and $45.36 million for the nine-month period.
- Operations consumed $10.35 million in cash over the nine-month period, raising concerns about the company's ability to fund operations without new financing.
Updated 01:30 UTC
New Developments in Bitcoin Treasury Strategy
- MSCI has opened a consultation in August 2026 regarding the potential removal of Strategy (formerly MicroStrategy) from its global indexes.
- The new framework assesses companies based on quantitative screens, focusing on their operating assets and various financial ratios.
- Strategy has shifted from pure Bitcoin accumulation to active liquidity management, including selling some Bitcoin to build cash reserves.
- As of now, Bitcoin is trading around $62,849, approximately 50% below its peak of over $126,000 reached in October 2025.
- Feedback on the MSCI consultation closes on September 30, with results expected by October 16, and any changes to be reviewed in November 2026.
FAQ
What is the Bitcoin Treasury Strategy's stance on MSCI's potential index removal?
The Bitcoin Treasury Strategy has stated that it 'doesn’t need' MSCI, emphasizing that index providers should reflect market realities rather than dictate corporate asset allocations.
What is MSCI proposing that could affect companies like Bitcoin Treasury Strategy?
MSCI is consulting on a proposal to classify companies primarily known for holding Bitcoin as 'Non-Operating Companies,' which could lead to their exclusion from major indexes.
What are the potential financial implications of MSCI's proposal?
If adopted, MSCI's proposal could lead to an estimated $2.8 billion in passive selling, impacting the market presence of companies like Bitcoin Treasury Strategy and Metaplanet.
What is the deadline for feedback on MSCI's proposal?
The consultation period for feedback on MSCI's proposal is open until September 30.
How has Bitcoin Treasury Strategy's investment approach changed recently?
Bitcoin Treasury Strategy, formerly known as MicroStrategy, has recently altered its strategy by selling Bitcoin and focusing on increasing cash reserves.
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