- Strategy Inc. may face removal from major benchmarks, including MSCI USA and Nasdaq 100.
- Michael Saylor emphasizes that Strategy is an operating company with $500M in software and $7.7B in Bitcoin-backed credit products.
- Index classifications do not affect the company’s long-term plan to build a Bitcoin-driven structured finance enterprise.
Michael Saylor, co-founder of Strategy Inc., addressed growing concerns over the company’s potential exclusion from major indices.
Bloomberg reports that MSCI USA and Nasdaq 100 are reviewing whether Strategy Inc. qualifies for inclusion, with a final decision expected by January 15.
Passive funds linked to the company represent nearly $9 billion in market exposure, and some market participants have questioned whether firms with large digital-asset treasuries should remain in traditional indices.
MSCI’s review focuses on whether companies holding more than 50% of their assets in digital currencies should be classified as investment funds rather than operating companies.
In response, Saylor emphasized that Strategy Inc. is not a fund, trust, or holding company.
He clarified that the firm operates as a publicly traded business with a $500 million software division and a robust Bitcoin-backed financing strategy. “We create, structure, issue, and operate,” Saylor said, highlighting the company’s active role in financial innovation.
Also Read: Strategy Inc Raises €620M in STRE IPO, Offers 10% Dividend to Investors
$7.7 Billion in Credit Products This Year
The firm has conducted five public offerings of digital credit securities this year, with a face value worth $7.7 billion, including $STRK, $STRF, $STRD, $STRC, and $STRE.
The firm has also rolled out its new offering, Stretch ($STRC), which is a Bitcoin-backed treasury product designed to offer variable monthly USD yields to accredited and retail clients alike.
The firm’s CEO, Saylor, clarified that his firm does not merely manage funds or act as holding entities but rather generates and manages structured financial instruments and utilizes Bitcoin as productive capital.
Strategists claim that this business model puts Strategy Inc. at the forefront of firms that employ their digital assets in their day-to-day business and financial strategies, as opposed to merely holding them as reserve assets.
The business structure takes aspects of capital markets and traditional software business systems, making it a hybrid business structure, which is quite rare in public markets.
Bitcoin-Backed Structured Finance Remains Core Mission
Despite potential index changes, however, Strategy Inc. maintains its sights set on long-term objectives. The firm’s objective of creating a structured finance business supported by Bitcoin and functioning in both digital finance and software was reiterated by Saylor.
The firm’s strategy is not influenced by index categories, and its focus is still on innovation, financial discipline, and expansion of its digital monetary platform.
Market observers will be keeping a keen eye on MSCI and Nasdaq’s final outcome, as it may influence the amount of investments by major institutions into Bitcoin-based corporation structures.
The move by Strategy Inc. can set a precedent for public firms wishing to harness blockchain without being tied down by traditional index regulations.
Also Read: Crypto Market Correlation With S&P 500 Breaks as Bitcoin Falls Under $100,000
