Bitcoin For Corporations [BFC] has formally urged MSCI to withdraw its proposed digital-asset exclusion rule, arguing that it risks removing dozens of legitimate companies from major global indexes simply because they hold Bitcoin or other crypto assets on their balance sheets.
The proposal under consultation would allow MSCI to exclude any operating company from its Global Investable Market Indexes if digital assets represent 50% or more of total assets.
The threshold could place as many as 39 public companies at risk of reclassification or removal, according to industry estimates.
Corporate treasuries challenge “fund-like” classification
BFC said the rule misclassifies operating companies as “fund-like” based solely on treasury composition, even when their core business activities—such as mining, infrastructure, software, or gaming—remain unchanged.
Companies including Strategy, MARA Holdings, Hut 8, Metaplanet, and SharpLink Gaming are among those potentially affected.
BFC argues that a company’s choice to hold Bitcoin as a treasury asset should not redefine its underlying business model or disqualify it from broad market representation.
Concerns over selective asset treatment
Critics argue that the proposal targets digital assets while leaving other large balance-sheet exposures unaddressed.
Companies holding 50% of assets in real estate, cash, or commodities would not face reclassification, raising concerns that the rule targets a single asset class.
Bitcoin For Corporations also warned that tying index eligibility to volatile asset prices could generate unpredictable index movements, triggering passive outflows and higher capital costs without reflecting underlying operating performance.
What comes next
MSCI has not yet issued a final decision. The firm is still consulting with market participants, and industry groups are expected to submit remarks before the review period closes.
If implemented, the rule could force index removals driven by balance-sheet composition rather than business fundamentals—an outcome BFC says would undermine index neutrality at a time when more operating companies are exploring digital-asset treasury strategies.
Final Thoughts
- BFC is urging MSCI to withdraw its proposal due to concerns over classification and index neutrality.
- Up to 39 companies could be affected if the 50% digital-asset threshold is adopted.