Strive Fights Back: Asset Manager Challenges MSCI’s Move to Drop Bitcoin Companies

An index giant wants to cut crypto loose—and one major player isn't having it.

The Pushback Begins

Strive Asset Management is publicly opposing a proposed rule change from MSCI that would see Bitcoin-related firms booted from its widely followed indexes. The move highlights the growing tension between traditional finance's gatekeepers and the crypto industry's relentless push for mainstream legitimacy.

Indexing the Future—or the Past?

MSCI's indexes are the bedrock for trillions in institutional capital. Kicking out Bitcoin miners and custodians isn't just a paperwork shuffle—it's a statement. It signals which assets the old guard deems 'respectable' enough for pension funds and endowments to hold. Strive's counter-argument is simple: ignoring a multi-trillion dollar asset class is a failure to reflect the modern investment landscape.

The Stakes for Your Portfolio

This isn't an academic debate. For everyday investors, index composition dictates what's in your ETF and retirement account. An MSCI exclusion could starve publicly-listed crypto firms of passive capital flows, potentially stifling innovation and limiting your exposure to the sector's growth. It's portfolio management by omission.

Strive's defiance throws a wrench into the smooth machinery of passive investing, forcing a conversation that finance traditionalists would rather avoid. After all, it's easier to maintain the old model when you simply refuse to index the new one—a classic move from an industry that often confuses convention with prudence.

Key Highlights

• Strive submits a formal letter urging MSCI to reconsider excluding Bitcoin treasury companies.
• Early discussions show MicroStrategy faces index-removal risk, which could trigger billions in outflows.
• Strategy Inc. stock remains under pressure as JPMorgan flags MSCI’s January ruling as a key catalyst.

Strive, a Nasdaq-listed asset manager, has weighed in on whether Bitcoin-heavy companies should remain in MSCI’s major equity benchmarks. On December 5, the firm sent a letter to MSCI CEO Henry Fernandez opposing the proposal to exclude Bitcoin-heavy firms. 

Strive argues that the change could harm passive investors and undermine index neutrality. MSCI is now reviewing firms with valuations tied to digital assets.

Inside Strive’s letter to MSCI

Strive’s letter argues that MSCI’s proposal would unfairly penalize companies whose business models incorporate Bitcoin and digital-asset strategies. The company calls the 50% threshold “unjustified and unworkable,” noting that many Bitcoin-heavy firms run real businesses, from structured finance to AI-focused mining.

The letter warns that the rule WOULD distort market representation and create inconsistent treatment across accounting standards. Strive urged MSCI to keep benchmarks neutral and offer optional “ex-digital-asset treasury” indices instead.

Key concerns raised by Strive include:

• The 50% cutoff is too blunt for a highly volatile asset.
• IFRS vs. U.S. GAAP differences could push firms into international indices instead of reducing exposure.
• Bitcoin-linked companies are participating in major growth areas like AI infrastructure and structured finance.

Strategy Inc. stock pressure

Strategy Inc., another major Bitcoin-treasury firm, has faced renewed pressure amid weaker BTC prices and the possibility of index removal. The company holds roughly 650,000 BTC, making it a central case in the debate over whether digital-asset treasuries belong in passive indices. Analysts note that uncertainty around MSCI’s decision has contributed to recent volatility.

CryptoQuant’s Ki Young Ju expects any BTC downturn to be milder than past cycles, but Strategy’s tightening mNAV and softer sentiment continue to pressure the stock and highlight risks for Bitcoin-heavy firms.

MSCI outcome already priced in

JPMorgan analysts argue that much of the removal risk is reflected in Strategy’s stock price. They say a favorable MSCI ruling could spark a rebound in both Strategy shares and broader Bitcoin-treasury sentiment.

MSCI is expected to issue its decision on January 15, a date now seen as a key moment for how traditional finance treats crypto-integrated corporations. The review comes as scrutiny of Bitcoin-heavy firms grows, marking a key moment for passive indices. Its decision could shift capital flows and shape how digital-asset companies fit into global benchmarks.

Also read: Sovereign Wealth Funds Are Buying bitcoin Dip, Says BlackRock CEO