Saylor Defends Strategy’s Bitcoin Model as MSCI Reviews Reclassification

Michael Saylor says Strategy’s Bitcoin-focused business model is strong as MSCI reviews whether to reclassify the company.

MSCI is deciding if companies that hold a lot of crypto should count as investment funds instead of traditional businesses.

However, Michael Saylor strongly disagrees, saying the MSCI label doesn’t matter because his company still strongly believes in Bitcoin, has a long-term plan, and aims to build a major digital money institution.

According to Saylor, Strategy is not a fund, trust, or holding company, but a publicly traded business with a $500 million software operation that uses Bitcoin as productive capital.

He noted that the company has completed five public sales of digital credit securities this year, raising over $7.7 billion, including the most recent STRE sale this month, which raised $704 million to purchase more Bitcoin.

Saylor added that Strategy launched Stretch, a “revolutionary” Bitcoin-backed credit product that provides both institutional and retail investors with a variable monthly USD yield.

Saylor Says Strategy Differs from Funds, Trusts, and Holding Companies

According to Saylor, no passive fund or holding company can do what his company does, noting that while funds and trusts hold assets, and holding companies just sit on investments, Strategy actively creates, structures, issues, and runs its operations.

He made these comments as MSCI prepares to decide on January 15 whether Strategy will stay in major stock indices like MSCI USA and MSCI World. Because of these concerns, MSTR stock is dropping as investors worry it could be removed from these indices. The stock is currently trading around $174, down nearly 2% today and over 11% in the past five days.

It is worth noting that MSCI’s decision could also affect Ethereum and Solana treasury companies, such as Tom Lee’s Bitmine. But crypto expert Ran Neuner says ETH and SOL companies won’t count as funds or trusts because they stake coins, run validators, and earn returns through DeFi.