Strategy Opposes MSCI’s Proposed Index Screening as It Faces Possible Removal From GIMI

Strategy Inc. asked MSCI on Aug. 31 to withdraw a qualification test that could result in the company being removed from the Global Investable Market Indexes (GIMI). Executive Chairman Michael Saylor and CEO Phong Le said the proposed method is discriminatory, arbitrary and misguided. According to Odaily, citing Bitcoin.com News, MSCI is considering a two-stage screening process. Under the proposal, companies with operating assets accounting for more than 50% of total assets could keep their eligibility. Companies that do not pass could be removed if they trigger at least four of five financial metrics. Simulations show that Strategy, Metaplanet and Yellow Cake could be removed from the index. Strategy is involved, with a market value of about $23.93 billion. Strategy said U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards do not distinguish operating and non-operating assets in the way MSCI proposes. The company also said it classifies its Bitcoin treasury business as a separate operating segment. Strategy said it also has about 1,500 employees, a software business that is close to $500 million in annual revenue, and Bitcoin-backed credit instruments. MSCI’s consultation ends on Sept. 30, and a decision is expected on Oct. 16.