Bitcoin News Update: Is It Considered a Business or an Investment Fund? MSCI Faces Challenges in Redefining Crypto

MSCI plans to determine by January 15, 2026, whether companies with substantial holdings of

, , and should be categorized as investment funds instead of standard corporations, a change that could see them removed from major stock indices such as the USA and Nasdaq 100. , asking whether firms with more than half of their assets in cryptocurrencies should be classified differently. Companies like MicroStrategy (now Inc.) and have come under particular examination, with some critics claiming .

Michael Saylor, who leads Strategy, has opposed the reclassification, stressing that his company is a "publicly traded operating company with a $500 million software business," not a fund or trust

. He maintains that Bitcoin serves as "productive capital" for building the "world's first digital monetary institution," setting his firm’s treasury approach apart from passive asset holders . Still, analysts such as Charlie Sherry from BTC Markets point out that MSCI’s standards are based on risk management, . "If the majority of a company’s value is tied to assets on its balance sheet rather than its core operations, MSCI considers this outside the bounds of a typical equity index," Sherry explained .

The risk of exclusion could have major financial consequences.

, Strategy alone might experience $2.8 billion in outflows from passive funds, and the impact could widen if other index providers adopt similar policies. Strategy’s current market value stands at $57 billion, with 649,870 Bitcoins worth $48.37 billion, . The premium on the company’s valuation—which once fueled its "sell stock, buy Bitcoin" approach—has diminished, now trading at just 1.1 times its net asset value .

The discussion is not limited to Bitcoin. Firms holding Ethereum and Solana, such as Tom Lee’s BitMine, could also be reclassified, although their active involvement in staking and validation may set them apart from passive funds

. Meanwhile, index providers like S&P have taken different stances. S&P, for example, still includes Strategy in its indices, , adding uncertainty for companies with crypto-heavy treasuries.

Clearer classification guidelines, however, could ultimately strengthen the industry.

, even if the immediate effects are challenging. The result of MSCI’s review will establish a benchmark for how traditional finance views crypto-centric firms, .