MicroStrategy May Be Excluded From MSCI Indexes Over Bitcoin Holdings

MicroStrategy may face exclusion from MSCI indexes because of its Bitcoin holdings, according to a report originally published by KuCoin. The report points to the company’s large exposure to the digital asset as the central issue behind the potential index change.

MicroStrategy is a business intelligence software company that has also become widely known for holding Bitcoin as part of its corporate treasury strategy. Its approach has made the company a closely watched public-market proxy for investors seeking exposure to Bitcoin through listed equities.

MSCI is a major provider of stock-market indexes used by investors, asset managers and index-tracking funds. Changes to index membership can matter because funds designed to follow those benchmarks may need to adjust their holdings when constituents are added or removed.

The reported possibility highlights the continuing debate over how index providers should classify companies whose balance sheets and market performance are heavily influenced by cryptocurrency holdings. No further details on a final MSCI decision were included in the available report.