Michael Saylor’s Bold Move: Engaging MSCI to Prevent MSTR Index Exclusion
Michael Saylor isn't waiting for the index gods to decide his fate. The MicroStrategy chief is taking the fight directly to MSCI, engaging the indexing giant in a strategic push to keep his company's stock—and its massive Bitcoin bet—from getting the boot.
The Index Exclusion Threat
It's a high-stakes game of financial chess. Index providers like MSCI wield enormous power; their decisions can send billions of dollars flowing in or out of a stock. For a company like MicroStrategy, whose valuation is now inextricably linked to Bitcoin, falling out of favor could mean a brutal re-rating by the market. Saylor's preemptive engagement is a clear signal: he won't let his corporate strategy be dictated by a committee's rulebook.
A Strategy of Conviction
This isn't about pleading a case—it's about defining it. Saylor's move reframes the narrative from "a company holding a volatile asset" to "a pioneering corporate treasury strategy." By engaging MSCI directly, he's forcing a conversation about how traditional finance categorizes the new wave of digital asset adoption. It's a masterclass in corporate communication, turning a potential vulnerability into a platform for advocacy.
The Bigger Picture for Crypto
The outcome here matters far beyond one stock ticker. A successful defense by MicroStrategy would set a crucial precedent, validating the "Bitcoin treasury reserve" model in the eyes of institutional indexers. It would signal that holding crypto on a corporate balance sheet isn't an eccentric outlier, but a legitimate strategic asset class. A loss, however, could temporarily chill corporate adoption, as boards get nervous about index eligibility.
Finance's old guard still loves a neatly labeled box, even if the future is bursting out of it. Saylor's play is a direct challenge to that rigidity—proving sometimes you have to work the system to change it.
Strategy’s MSCI Engagement
Strategy is in touch with MSCI about the review, Saylor said. He said he’s not convinced about JPMorgan’s estimates for withdrawals from passive funds. Bank analysts have indicated billions could leave if MSTR does, but Saylor said underlying estimates need more clarity.
MSTR joined MSCI’s key indices in May 2024. The addition took place at the height of last year’s surging price for Bitcoin. MSTR was singled out by MSCI as one of three largest entrants to its World Index set at the time. The company had already established a digital-asset treasury model and had amassed a substantial Bitcoin reserve by the time it joined the benchmark.
The MSCI World Index follows more than 1000 large and mid-cap companies in developed markets. That is closely watched by investors around the world. Numerous funds track or otherwise reference the index, a dynamic that can intensify the influence of membership for listed firms. By having all the Strategy funds in the index, it calibrated its market exposure to a large institutional audience.
2025 Slump Hits Bitcoin-Treasury Stocks
Many companies in the category saw sharp declines in their shares. And other firms like Strategy that have large holdings of Bitcoin were also feeling the power of market dynamics. As of mid-October, the enterprise values of some companies fell below the value of their bitcoin holdings and raised new uncertainties for the industry.
Saylor discussed the volatility during an event in Dubai. Its equity is prone to hyper-reaction because its structure compounds Bitcoin’s swings, he said. He pointed out that Bitcoin declines tend to lead to larger percentage moves in the company’s stock.
Strategy just announced a fiscal reserve. The company established a $1.44 billion fund for the payment of preferred dividends and interest requirements. It also increased its Bitcoin holdings to 650,000 BTC. The company reduced a number of performance targets for 2025 after Bitcoin dipped under $90,000, reflecting the reality of today’s market.
