Bitcoin For Corporations (BFC) is actively challenging a proposed rule by MSCI that could significantly impact the inclusion of companies in its global indexes based on their digital asset holdings. This confrontation underscores a critical debate about how traditional financial frameworks should adapt to modern corporate treasury strategies incorporating cryptocurrencies.
Challenging the "Fund-Like" Classification
MSCI's proposal suggests a new exclusion criterion: operating companies holding 50% or more of their total assets in digital assets, such as Bitcoin, could face reclassification or removal from its Global Investable Market Indexes. BFC strongly contends that this threshold unfairly misclassifies legitimate operating businesses as "fund-like" entities, solely based on their treasury composition. This perspective ignores their core business activities, which span various sectors like mining, infrastructure, software, or gaming. As many as 39 public companies, including Strategy, MARA Holdings, and Hut 8, are estimated to be at risk, highlighting BFC's argument that holding Bitcoin as a treasury asset should not fundamentally redefine a company's underlying business model or disqualify it from broad market representation.
Concerns Over Discriminatory Treatment and Index Neutrality
A major point of contention for critics is the proposal's selective targeting of digital assets. They argue that companies with similar concentrations in other asset classes, such as real estate, cash, or commodities, would not face the same scrutiny or reclassification risk, suggesting an unfair bias. Furthermore, BFC warns that linking index eligibility to the inherently volatile prices of digital assets could introduce unpredictable index movements. This volatility, driven by balance-sheet composition rather than core operating performance, could trigger passive investment outflows and elevate capital costs for affected companies. BFC asserts that if implemented, the rule would undermine the crucial neutrality of indexes, especially at a time when an increasing number of operating companies are exploring digital asset treasury strategies.
