Following the announcement by MSCI that Strategy had been removed from the index, the controversy over the classification of Bitcoin Stores rose rapidly. Strategy ' s market identity as a listed company known for its large-scale possession of bitcoin has been between the software company and the encryption asset opening tool.
The dispute focused on corporate classification.
The report shows that at the heart of this realignment MSCI is a rejuvenating of Strategy ' s business attributes. While the company still retains its original enterprise software business, it is generally believed that the main factor driving its valuation and trading activity has shifted to the size of the Bitcoin hold and associated capital operations.
Strategy subsequently responded that the market should not lose sight of the nature of its business entity, nor should it define corporate identity only in terms of asset allocation. The company ' s position is that its business structure does not lose the business identity of the listed company because it holds Bitcoin.
Bitcoin's bank model is reviewed again.
This adjustment once again raises a broader question: What should be done with the traditional index system when a listed company allocates large amounts of assets to Bitcoin? For some index providers, companies may be closer to encrypted asset agents, rather than non-traditional industry companies, if stock price performance follows mainly bitcoin fluctuations.
However, for supporters, Strategy remains a publicly listed enterprise with management, financing arrangements and business continuity. Its bitcoin strategy was a choice of allocation, not a change in corporate law.
Index adjustment leads to passive funds
The inclusion and elimination of indicators is not only a classification issue, but may also affect financial flows. If the index is removed, the passive funds for tracking the index may need to be adjusted to hold, thus affecting stock trade volumes and short-term price performance.
- One focus is whether companies should still be classified according to their original industry attributes.
- Focus two is whether bitcoin hold-to-value weights have exceeded the main industry
- Focus three is the associated impact of index adjustments on the allocation of passive funds
The incident also reflects the fact that the traditional financial system is still searching for ways to define Bitcoin Treasury. Similar disputes may continue to arise in the future as more listed companies include bitcoin in their balance sheets.