MicroStrategy founder responds to MSCI reclassification threat: We are not an ETF, we are Bitcoin capital innovators.

As the index provider MSCI hinted that it might reclassify MicroStrategy as an investment company or an ETF-like entity, the company's executive chairman Michael Saylor quickly countered on Friday, emphasizing that MicroStrategy remains a software company with a clear operational model and innovative spirit. Market analysts warn that if the reclassification occurs, it could trigger a forced selling wave of index funds worth up to $9 billion. In this regard, experts further suggested that MSCI's move is aimed at blocking financial engineering “Arbitrage” cycles, which may further impact DAT company.

( JPMorgan: The MSCI index may kick out MicroStrategy, potentially triggering an outflow of nearly $10 billion in funds )

MSCI may adjust its classification, and the market is concerned about a reversal of capital flow.

According to market news, MSCI is considering redefining the nature of MicroStrategy as a company due to its high proportion of Bitcoin assets, along with ongoing capital operations related to cryptocurrencies. If MicroStrategy is no longer viewed as a traditional operating company, it may be removed from widely tracked indices such as MSCI World and MSCI USA, impacting the allocation strategies of a large number of passive funds and possibly forcing these institutions to dump their holdings, significantly affecting stock prices.

Saylor: We are a Bitcoin capital company, not a passive tool.

Saylor immediately posted a detailed thread on X, emphasizing that MicroStrategy is not a “passive fund, holding company, or index tool,” but a dual-core enterprise combining business analytics software and digital asset strategies. He pointed out that MicroStrategy's software business is still operating robustly, with annual revenue of about $500 million, and is also the world's largest corporate holder of Bitcoin, with the current value of its holdings exceeding $20 billion.

Why can't innovative financial operations be considered “operational behavior”?

Saylor further outlined significant capital market operations for the year 2025, refuting the claim that MicroStrategy is a “passive tool,” including:

Issue 5 public securities backed by Bitcoin, with a total nominal amount of 7.7 billion USD.

Launch of the innovative product $STRC, a variable rate preferred stock linked to the performance of Bitcoin.

Continue to develop convertible bonds and hybrid financial products to support Bitcoin reserve strategies.

“These actions demonstrate that we are active innovators in the capital markets,” said Michael Saylor.

He emphasized that MicroStrategy is “engineering” new financial tools that connect the worlds of traditional finance and digital assets, which is completely different from the passive nature of ETFs.

Investors are on the sidelines, and the stock price has fallen 43% this year.

Despite Saylor's tough stance, MicroStrategy's stock price is still affected by market sentiment, dropping about 3% on Friday afternoon. MSTR has fallen 43% this year.

The past increase was mainly benefited from the price of Bitcoin breaking through 100,000 USD, as well as the amplified effect of the company's high leverage strategy.

Analysts still have differing opinions on the potential reclassification of MSCI. Some believe that MicroStrategy has essentially become a “Bitcoin ETF embedded in software division,” while others praise Saylor's strategy as a significant innovation in corporate finance, creating billions of dollars in value for shareholders.

Stick to the HODL strategy: holding 250,000 coins, never sold.

As of November 22, 2025, MicroStrategy holds over 640,000 bitcoins, with an average purchase cost of approximately $74,433 per coin. Since the launch of its bitcoin reserve strategy in 2020, the company has never sold a single bitcoin and has repeatedly reaffirmed that it will “hold forever.”

Saylor once again demonstrated an uncompromising stance at the end of his tweet: “The indexing method can change, but our beliefs will not. We will continue to build the Bitcoin monetary network, regardless of how the outside world labels us.”

Expert Opinion: MSCI's move is to prevent financial engineering “Arbitrage” cycles.

In response to the potential reclassification event, cryptocurrency industry researcher Yu Zhe'an proposed a deeper perspective. He believes that MSCI's considerations are not only about evaluating whether MicroStrategy still qualifies as an operating company, but also about preventing a “financial flywheel” model that exploits arbitrage through index mechanisms.

Yu Zhe'an pointed out that companies like MicroStrategy, referred to as DAT (Digital Asset Treasuries), are essentially employing a self-reinforcing strategy: issuing bonds to buy cryptocurrencies, thereby driving up stock prices, which subsequently lead to inclusion in major indices, forcing passive funds to buy in, further driving up prices, creating a kind of capital operation similar to a “crypto speculation cycle.”

“These DAT companies are essentially disguised as high-leverage funds,” said Yu Zhe'an. “MSCI originally promised to provide a portfolio of productive enterprises, but was forced to include these high-volatility crypto asset repositories, leading global pension funds to unknowingly provide liquidity for their coin speculation games.”

He further emphasized that this is not a crackdown on cryptocurrencies, but rather a necessary correction to the current classification standards of “operating companies” and “asset-holding companies.” If MSCI reclassifies MicroStrategy, it is highly likely to trigger other index companies to follow suit, further affecting the entire capital market's definition and evaluation methods for such enterprises.

This article discusses MicroStrategy founder's rebuttal to MSCI's reclassification threat: We are not an ETF, we are Bitcoin capital innovators. Originally appeared on Chain News ABMedia.