Michael Saylor, executive chairman of Strategy, defended his company’s approach to Bitcoin as MSCI reviews its index status. He said the company is not a fund, trust, or holding company but a publicly traded company with a $500 million software business.
Furthermore, Saylor explained that Strategy uses Bitcoin as productive capital and follows a long-term strategy focused on financial innovation. The MSCI is reviewing companies like Strategy to decide if they belong in major indexes. He added, “Index classification doesn’t define us; our mission remains unchanged.”
This year, Strategy completed five public offerings of digital credit securities, including $STRK, $STRF, $STRD, $STRC, and $STRE. In total, these deals are worth more than $7.7 billion. In the latest offering, STRE raised $715 million to buy more Bitcoin.
In addition, the company launched Stretch, a new Bitcoin-backed treasury credit instrument. He described it as “revolutionary” and said it provides variable monthly USD yield to investors. Saylor emphasized, “No passive vehicle or holding company can do what we are doing.”
Typically, funds and trusts hold assets passively, while holding companies only keep investments. However, Strategy creates, structures, issues, and operates its products actively.
Saylor said, “Our team is building a new kind of enterprise, a Bitcoin-backed structured finance company.” He also highlighted that the company can innovate in both software and capital markets, unlike passive funds or holding companies.
MSCI’s review could affect whether Strategy remains in indexes like the Nasdaq 100, MSCI USA, and MSCI World. As a result, a decision is expected by January 15.
At the time of this report, the company’s stock has dropped almost 2% today and more than 11% in the last five days amid concerns about possible removal from the indexes.
MSTR Stock Price Action | Yahoo Finance
Saylor’s remarks show the company is committed to Bitcoin despite market worries. Moreover, he said their strategy is long-term and that their focus on building a digital monetary institution continues.
That said, Strategy hopes to reassure investors and the public that its business model is different from traditional funds or trusts.
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