MicroStrategy has officially challenged MSCI’s proposed “non-operating company” screen by citing a letter MSCI itself sent to the SEC in 2022. The company argues that MSCI’s new criteria would require the index provider to subjectively judge whether Bitcoin belongs within an operating business's treasury—a role MSCI previously told regulators it was not equipped or authorized to perform. By holding MSCI to its own historical defense, MicroStrategy seeks to maintain its status as an operating software firm rather than an investment vehicle.
How is MicroStrategy fighting MSCI’s attempt to reclassify MSTR as a non-operating company?
MicroStrategy is utilizing MSCI’s own 2022 regulatory arguments to the SEC to challenge a new screening methodology that could reclassify the firm as a non-operating company. This legal strategy aims to prevent MSTR's removal from major indices, which could jeopardize billions in institutional investment linked to its Bitcoin treasury.
