MicroStrategy CEO Michael Saylor has pushed back against MSCI’s reclassification of the company, classifying it as a hybrid managed business rather than an investment fund.
The clarification comes amid formal consultations on how digital asset treasury companies (DATs) should be treated in flagship stock indexes, a decision that could have significant market implications for MSTR.
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Michael Saylor draws the line: “MicroStrategy is not a fund or trust” amid intense scrutiny from MSCI
In a detailed post on Twitter, Saylor emphasized that MicroStrategy is not a fund, trust, or holding company.
“We are a publicly traded company with a $500 million software business, and we have a unique financial strategy that uses Bitcoin as our production capital,” he declared.
The statement positions MicroStrategy as more than just a Bitcoin holder, with Saylor noting that funds and trusts passively hold the assets.
“Holding companies are waiting for investment. We create, build, issue and operate,” Saylor added, underscoring the company’s active role in digital finance.
This year, MicroStrategy completed five public offerings of digital credit securities: STRK, STRF, STRD, STRC, and STRE. Their total notional principal amount exceeds $7.7 billion.
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Specifically, Stretch (STRC) is a Bitcoin-backed treasury instrument that offers a variable monthly USD yield to both institutional and retail investors.
Saylor describes MicroStrategy as a Bitcoin-backed structured finance company operating at the intersection of capital markets and software innovation.
“You can’t do what we do with a passive vehicle or holding company,” he said, stressing that the index classification does not define the company.
Why MSCI’s decision matters
MSCI’s discussions could result in companies like MicroStrategy being reclassified as investment funds and removed from major indexes such as MSCI USA and MSCI World.
The exclusion could trigger billions of dollars in passive outflows and increase volatility in MSTR, which is already down about 70% from its all-time high.
The stakes extend beyond MicroStrategy. Saylor’s defense is challenging the norms of traditional finance (TradFi) by asking whether a Bitcoin-driven business can maintain access to passive capital without being called a fund.
MicroStrategy holds 649,870 Bitcoins with an average cost of $74,430 per coin. The company has an enterprise value of $66 billion and relies on issuance of equity and structured debt to finance its Bitcoin accumulation strategy.
MSCI’s ruling, expected by January 15, 2026, could test the viability of these hybrid financial models in the public markets.
