Strategy Inc. (NASDAQ:MSTR) CEO Phong Le has strongly criticized index provider MSCI over a proposed rule change that could exclude Bitcoin (CRYPTO: BTC) treasury companies from global benchmark indexes, calling the provider’s move “ill-advised.”
Speaking alongside Executive Chairman Michael Saylor during a recent shareholder Q&A, Le addressed the proposal’s potential fallout, reassuring investors that any resulting deletion would ultimately have an “immaterial” impact on the firm.
Pushing Back Against Accounting Redefinition
During the session, Le argued that MSCI’s updated consultation framework attempts to redefine what constitutes an operating asset, placing the index firm directly at odds with U.S. regulators.
“I think the fact that they’re taking a second cut at this is a bit ill-advised,” Le stated. “They’ve taken a different approach to it, which is to redefine what an operating asset is. The SEC and FASB have defined what an operating asset is for Strategy, and Bitcoin certainly is that. So I think they’re sort of taking a position against generally accepted accounting principles and the SEC.”
Le added that Strategy will submit a formal response to challenge what he described as an approach “antagonistic to Bitcoin, the asset class.”
Le Downplays Potential Selling Pressure
Addressing concerns over institutional selling pressure if Strategy is dropped from MSCI global indexes, Le downplayed the potential risk to MSTR shares.
“MSCI indices represent somewhere between 3% and 4% of our current shares,” Le noted. “If we were to be excluded from their indices, then you could expect that to create some selling pressure over a period of time. But it’s really immaterial to us.”
The Proposed Exclusion Framework
MSCI’s August 2026 proposal introduces a two-step screen targeting firms holding heavy crypto treasuries, checking if core operational assets exceed 50% of total holdings before applying five financial ratios.
Despite the proposal, Le expressed confidence: “I think they will consider our responses… and hopefully not move forward… But even if they do, right, I don’t think it’s that important to us in the end.”
How Has MSTR Performed In 2026?
MSTR shares fell 35.72% year-to-date, declined 73.33% over the last year, and 24.08% over the last six months. It closed 4.99% higher at $97.68 per share on Monday, and it was 1.25% lower in premarket trading on Tuesday.
Benzinga’s Edge Stock Rankings indicate that MSTR maintains a weak price trend in the long, short and medium terms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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