Strive Asset Management has voiced strong opposition to a recent proposal from MSCI, a prominent index provider, which suggests removing companies holding bitcoin that constitutes over 50% of their total assets from its major equity benchmarks. In a formal letter addressed to MSCI CEO Henry Fernandez, Strive articulated serious concerns, warning that the proposed change could lead to inequitable and inconsistent results across the global market.

A central point of contention for Strive is the disparity in how companies report their bitcoin holdings under different accounting standards. Specifically, the letter highlighted significant differences between U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Strive contends that this divergence in reporting methodologies would inevitably lead to inconsistent outcomes, where firms with comparable actual exposure to bitcoin could be treated differently by MSCI's indexes purely based on their accounting framework jurisdiction.

Instead of redefining the eligibility criteria for broad benchmarks, Strive urged MSCI to leverage its existing optional "ex-digital-asset treasury" index variants. The firm pointed out that custom indexes already exist for specific sectors, such as energy and tobacco, designed to cater to particular investment preferences without altering the core index composition. Strive, co-founded in 2022 by Vivek Ramaswamy and Anson Frericks with a mission to "depoliticize corporate America," is a significant player itself, ranking as the 14th-largest public corporate bitcoin holder with more than 7,500 BTC on its balance sheet. Its executives firmly believe the proposal would constitute a "depart from index neutrality," advocating that MSCI should "let the market decide" how companies with substantial bitcoin holdings are valued and integrated into investment portfolios.

The potential implications of MSCI's proposed rule change are substantial, particularly for major corporations like MicroStrategy, which holds approximately 650,000 BTC. JPMorgan estimates that an exclusion by MSCI alone could trigger $2.8 billion in passive outflows from MicroStrategy. Should other index providers adopt similar policies, this figure could escalate dramatically, potentially reaching $8.8 billion across the market. Notably, Michael Saylor, MicroStrategy’s executive chairman, clarified that MicroStrategy is a publicly traded operating company with a $500 million software business and a treasury strategy utilizing Bitcoin, emphasizing that it is not merely a fund, trust, or holding company.

Strive's letter further criticized the arbitrary 50% threshold, calling it "unjustified, overbroad and unworkable." The firm argued that many companies with significant bitcoin treasuries are actively operating real businesses, spanning sectors such as advanced AI data centers, structured finance, and critical cloud infrastructure. Bitcoin miners like MARA, Riot, Hut 8, and CleanSpark were cited as examples of firms strategically pivoting their business models to rent out excess power and computing capacity, demonstrating tangible economic activity beyond just mining and holding digital assets.

To underscore its point about index neutrality, Strive drew parallels to other established industries. The firm noted that equity indexes do not typically exclude energy companies based on oil reserves, nor do they remove gold miners whose valuation is intrinsically linked to the price and quantity of precious metals. Strive argued that applying a bitcoin-specific exclusion rule would introduce unwarranted investment judgment, distorting benchmarks designed to remain neutral.

Executives at Strive also emphasized the market volatility associated with bitcoin and the additional complexities arising from accounting differences. Bitcoin's dramatic price swings could lead to companies frequently moving in and out of index eligibility, creating instability and unpredictability for investors. Moreover, the presence of derivatives or structured financial products tied to bitcoin further complicates the accurate calculation of a company's exposure, making a strict percentage-based rule difficult to implement fairly and consistently. Strive warned that such rules could push digital asset innovation abroad, potentially penalizing U.S. markets while international companies under more lenient IFRS treatments might benefit. The firm also expressed concern that the proposal could stifle the development of new bitcoin-backed financial products within the U.S.

MSCI is slated to announce its final decision on January 15, 2026, ahead of its February index review. Strive Asset Management is among several prominent firms lobbying against the proposal, advocating for fairness, index neutrality, and allowing market forces to determine the treatment of bitcoin-heavy firms, rather than imposing restrictive measures that could limit investor access or dictate investment strategies.