Bill Miller Challenges MSCI Plan That Could Remove Treasury Firms
The proposed screen could affect Strategy and Metaplanet after a May 2026 simulation identified them as potential deletions from a global index.
Bill Miller IV, chairman and chief investment officer of Miller Value Partners, is challenging an MSCI proposal that could remove digital-asset treasury firms and other companies from its global investable indexes.
Miller submitted the firm’s response Sept. 29, arguing that rigid definitions of operating assets could create inconsistent results across industries and shrink the range of companies represented in the indexes.
Companies with operating assets exceeding 50% of total assets would pass the first test. Firms that fail would then face five additional screens covering operating-asset intensity, expense intensity, operating cash flow, fair-value intensity and capital dependence. Triggering at least four of those five screens would make a company ineligible.
The proposal is not specifically limited to Bitcoin (BTC) or other digital assets. The screen targets companies whose value is tied mainly to non-operating holdings, weak operating cash generation and dependence on external funding.
The plan has drawn attention from crypto-market participants because an MSCI simulation using May 2026 data identified Strategy, Yellow Cake PLC and Metaplanet as potential deletions from the MSCI ACWI Investable Market Index. Center Laboratories, Lydia Holding and SharpLink were placed on a proposed watchlist.
Existing index constituents would need to fail the applicable screens for two consecutive annual periods before removal. Companies that are not current constituents would be assessed using their latest filing.
Miller warned of “potential long-lasting negative consequences for MSCI’s relevance” and called for “a broader rethink of what MSCI’s purpose is.” His objection extends beyond Bitcoin-focused companies to the broader use of quantitative tests to define operating businesses.
The consultation closed Sept. 30. MSCI expects to announce its decision by Oct. 16, with any changes proposed for the November 2026 Index Review. The potential deletions remain simulation results rather than final index decisions.
The proposal follows MSCI’s earlier expansion of its proposed index screen, after the index provider dropped a separate plan aimed specifically at companies holding large amounts of Bitcoin and other digital assets.
