Strive CEO Matt Cole has expressed concerns over MSCI’s decision to potentially exclude Bitcoin-holding companies from their indexes, advocating instead for a marketplace-driven approach.

In a letter addressed to Henry Fernandez, MSCI’s chairman and CEO, Cole contended that such exclusions diminish passive investors’ exposure to vital growth segments, particularly those connected to digital assets.

Cole stated, “Losing access to MSCI indexes could severely impact these cryptocurrency treasury firms. Analysts from JPMorgan previously warned that Strategy, an indexed Bitcoin treasury firm, might face a $2.8 billion loss if MSCI follows through with its exclusion.”
Cole points out that Michael Saylor, chair of Strategy, confirmed ongoing communications regarding the matter with MSCI.

Cole further emphasized that prevalent Bitcoin miners like MARA Holdings, Riot Platforms, and Hut 8, all of which could find themselves on the exclusion list, are pivoting to fortify the infrastructure for AI computing as a means of diversifying their business.

“Many analysts argue that the AI race is increasingly limited by access to power, not semiconductors. Bitcoin miners are ideally positioned to meet this rising demand,” Matt Cole asserted.

He stressed that even as AI-related earnings grow, the Bitcoin assets will persist, and exclusion from indexes may restrict investments in the most dynamic sectors of the economy.

The conversation around Bitcoin structured finance also emerged, with Cole highlighting that companies like Strategy and Metaplanet provide investment products similar to structured notes that are linked to Bitcoin stability and performance—this is particularly noteworthy as it aligns with traditional finance systems.

Cole concluded by stating that tying index inclusions to the Bitcoin holdings, particularly with a 50% threshold, would be impractical and would lead companies to “flicker” on and off the index, raising costs associated with management and tracking.

To resolve this, he suggested that MSCI consider establishing an “ex-digital asset treasury” category allowing institutions that wish to disassociate from such firms the option to choose their benchmarks, while others could still rely on indices reflecting the full investable universe.