Strive, a US-listed company that holds Bitcoin
In a letter addressed to MSCI’s chief executive, Henry Fernandez, Strive explained that cutting companies with digital assets exceeding half of their total holdings would limit investors’ access to fast-growing industries.
The firm also warned that the proposal would miss the intended targets and exclude firms diversifying into new areas.
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Strive’s chief executive, Matt Cole, noted that mining companies such as MARA Holdings, Riot Platforms, and Hut 8 could be unfairly affected. He said these firms are using their facilities to supply computing power for artificial intelligence operations, not only cryptocurrency mining.
Cole added that the policy would also block access to companies like Strategy and Metaplanet, which offer investment products tied to Bitcoin’s returns, similar to structured notes from large banks such as JP Morgan, Morgan Stanley, and Goldman Sachs.
He added that competing with established financial institutions is difficult because index rules make it more expensive for Bitcoin-focused firms to raise capital.
Cole further said that linking index inclusion to a volatile asset like Bitcoin would cause companies to move in and out of the index frequently, which would raise costs and errors for investors.
Determining when a company’s digital assets reach the 50% mark could also prove difficult, as exposure often includes derivatives or funds, not only direct holdings.
Citadel Securities recently stirred controversy after asking the US Securities and Exchange Commission (SEC) to enforce tighter controls on decentralized finance (DeFi) platforms that trade tokenized shares. What did the firm say? Read the full story.
