Bitcoin Coalition Urges Rejection of MSCI Proposal Over Fairness Issues in Indexing

Industry Challenge to MSCI Proposal: Bitcoin For Corporations (BFC) has formally challenged MSCI's proposed exclusion of companies with over 50% digital assets from its Global Investable Market Indexes, arguing that it undermines the operational realities of businesses.

Structural Flaws Identified: BFC highlights three main flaws in MSCI's proposal: redefining a company's primary business based on asset composition, unfairly singling out digital assets, and creating instability in index membership due to the volatility of digital asset prices.

Consequences for Public Companies: The proposed changes could lead to artificial reclassification risks, passive fund outflows, increased capital costs, and volatility driven by external price signals rather than actual business performance.

Formal Requests Made: BFC is requesting MSCI to withdraw the proposed exclusion, maintain an operations-based definition of primary business, ensure asset-class neutrality, and engage with market participants for a more balanced classification framework.