MSCI , the Wall Street giant when it comes to financial indexes, is cooking up a plan that’s got Bitcoin treasury firms sweating bullets.
The idea? Kick out companies whose Bitcoin stash makes up more than half their assets. Cue the dramatic gasps and chaos in crypto-land.
MSCI is the gatekeeper against the Bitcoin-heavy companies?
Enter Matt Cole, CEO of Strive, the Nasdaq-listed Bitcoin treasury company ranked 14th largest in the world. He’s strode right up to MSCI’s doorstep waving a letter like a rebel flag.
His message? Let the market decide who’s in or out, instead of MSCI playing gatekeeper and tossing Bitcoin lovers from their prestigious indexes.
The controversy boils down to this, exclude those Bitcoin-heavy companies, and investors lose access to some of the fastest-growing sectors, not to mention a chunk of pure crypto magic.
JPMorgan’s warned that Strategy, a big Bitcoin treasury firm cozying up in MSCI’s World Index, risks a $2.8 billion hit if this blacklist goes live.
Michael Saylor, Strategy’s own chair, is already chatting with MSCI, trying to work out how this mess might happen without turning investors into collateral damage.
Bitcoin structured finance products
Now, here’s where the things get pretty interesting, because according to Cole, Bitcoin miners like MARA Holdings, Riot Platforms, and Hut 8 aren’t just digital gold diggers. They’re setting up shop as power brokers for the booming AI sector.
Since AI thirsts for electricity like a teenager chugs energy drinks, these miners have a strategic edge.
Even as AI profits pile up, Bitcoin remains locked in the vault. So axing these Bitcoin holders cuts off the cash flow from one of the most explosive parts of the economy.
That’s not all. Companies like Strategy and Metaplanet are mixing up Bitcoin structured finance products, think Wall Street’s famous structured notes but with a crypto twist.
That means banks like JP Morgan, Morgan Stanley, and Goldman Sachs are playing in the same sandbox.
Penalizing Bitcoin companies feels like putting a ball and chain on the very players who innovate fastest in crypto finance.
Companies with hybrid holdings
Matt Cole throws another wrench in the works, saying that basing inclusion on a volatile asset like Bitcoin means stocks keep flipping in and out of the index.
It’s like trying to grab smoke. Imagine flickering companies bouncing in and out of MSCI’s listings, chaos for managers and investors alike.
Plus, nuances get lost. Trump Media & Technology Group, famously holding the tenth-largest public Bitcoin treasury, barely squeaked under MSCI’s radar since its Bitcoin is spread between spot coins, derivatives, and ETFs.
What about companies with hybrid holdings? Cole says excluding them isn’t straightforward.
Strive wants MSCI to create a separate “ex-digital asset treasury” index.
This way, nervous investors can avoid Bitcoin-heavy firms without throwing the crypto baby out with the bathwater.
Meanwhile, those ready to ride the full crypto wave can keep cruising the standard indexes. Sounds like a viable option.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
