"BFC argues the proposal misclassifies operating companies by prioritizing balance-sheet holdings over actual business operations. "MSCI has long defined companies by what they do, not by what they hold. This proposal abandons that principle for a single asset class," said George Mekhail, managing director of BFC. "A shareholder-approved treasury decision shouldn't override that reality." The coalition identified three structural issues with the proposal."
"First, it redefines primary business based on asset composition rather than revenue-generating operations. Second, it singles out digital assets while other asset classes face no similar treatment. Third, it ties index inclusion to volatile market prices, creating unpredictable membership changes. BFC warned that the proposal could lead to passive fund outflows, higher capital costs, and increased volatility for companies, all unrelated to operational performance."
Bitcoin For Corporations (BFC), with member companies, formally challenged MSCI's proposed rule to exclude companies from MSCI Global Investable Market Indexes if digital assets represent 50% or more of total assets. The rule targets firms classified primarily by digital-asset treasury activity. BFC argues the test prioritizes balance-sheet holdings over revenue-generating operations and misclassifies operating companies. The coalition identified three structural issues: redefining primary business by asset composition, singling out digital assets, and tying inclusion to volatile market prices. BFC warned of passive fund outflows, higher capital costs, and greater volatility unrelated to operational performance, and urged withdrawal and engagement. Strive Asset Management also urged MSCI to reconsider.
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