Odaily News: Bitcoin treasury company Strategy Inc. requested on Aug. 31 that MSCI withdraw the eligibility test that could lead to its removal from the Global Investable Market Index (GIMI). Executive Chairman Michael Saylor and CEO Phong Le stated that the methodology is discriminatory, arbitrary, and misguided.
MSCI proposes a two-stage screening: companies with operating assets exceeding 50% of total assets may retain eligibility; those that fail may be disqualified if they trigger at least four of five financial metrics. Simulations show that Strategy, Metaplanet, and Yellow Cake could be removed from the index, with Strategy involving a market capitalization of approximately $23.93 billion.
Strategy stated that neither U.S. GAAP nor IFRS distinguishes between operating and non-operating assets in the manner proposed by MSCI, and it lists its bitcoin treasury business as a separate operating segment. The company also has approximately 1,500 employees, a software business with annual revenue of nearly $500 million, and issues bitcoin-backed credit instruments. The MSCI consultation ends on Sept. 30, with a decision expected on Oct. 16. (Bitcoin.com News)