Strategy, formerly known as MicroStrategy, has expressed strong opposition to 
a proposal by the Morgan Stanley Capital International (MSCI) to exclude 
digital asset treasury companies (DATs) from its indexes. Calls For Fair 
Treatment Of Digital Asset Companies In a recent letter signed by Michael 
Saylor and the firm’s CEO Phong Le, Strategy highlighted its support for 
MSCI&#8217;s efforts to establish consistent eligibility criteria across its 
indices. However, the company criticized the proposed threshold for excluding 
firms with more than 50% digital assets on their balance sheets, calling it 
“misguided.” The company argued that this measure could have negative 
implications not only for Strategy’s operations but also for the broader 
cryptocurrency market. Related Reading: Expert Declares Bitcoin Has Reached 
Midpoint Of Bear Cycle: What Lies Ahead? Strategy emphasized that, unlike 
traditional investment funds, it maintains the operational agility to adapt 
its value-creation strategies in tune with the evolving technology underlying 
Bitcoin. The firm asserts that this flexibility is a critical asset for 
investors and distinguishes Strategy and other DATs from traditional digital 
asset investment vehicles. The firm likened its investment approach in a 
singular asset class to that of real estate investment trusts (REITs) or oil 
companies, stating that MSCI categorizes those entities correctly without 
labeling them as investment funds. Therefore, it argued, DATs should be 
afforded similar treatment. ‘Discriminatory And Arbitrary’ The letter 
criticized the proposed 50% digital asset threshold as “discriminatory and 
arbitrary,” suggesting that it imposes uniquely unfavorable conditions on 
digital asset companies while allowing other industries—like oil, timber, and 
real estate—to maintain concentrated asset holdings without similar scrutiny. 
Strategy raised concerns that enforcing this rule would necessitate MSCI to 
create new methods for measuring balance sheet concentration, complicating the 
indexing process unnecessarily due to varying accounting principles across 
asset classes and jurisdictions. Additionally, Strategy elaborated on how the 
exclusion of DATs could substantially inhibit innovation within the digital 
asset industry, which the current administration strongly promotes as part of 
its economic strategy. The company said that digital assets like Bitcoin have 
the potential to become foundational elements of global financial systems, but 
the proposed measures could limit access to these transformative technologies 
for pension plans and 401(k)s, ultimately redirecting billions away from the 
sector. Strategy cautioned that a hasty exclusion of DATs could be based on 
misconceptions about their business models, asserting that it reflects a 
misunderstanding of the nature of these entities. The firm advocated for a 
more measured approach similar to MSCI&#8217;s past handling of the “Communication 
Services” sector, which underwent extensive consultation and a thorough review 
before reorganizing traditional telecom, media, and internet companies. 
Strategy Urges MSCI To Reconsider If implemented, Strategy warns that MSCI’s 
proposal could lead to the delisting of numerous companies heavily involved in 
digital assets. JPMorgan analysts estimate that Strategy alone might face 
liquidations of up to $2.8 billion as a direct consequence of this exclusion. 
Such a move is also expected to potentially distort market dynamics by 
incentivizing Bitcoin miners to sell their assets immediately instead of 
holding them as part of their business strategy. Related Reading: Ethereum 
Price Climbs Toward $3,300 For The First Time Since November: What’s Driving 
The Surge? In light of these concerns, Strategy urged MSCI to withdraw the 
proposal for excluding companies with over 50% digital asset holdings from its 
Global Investable Market Indexes. The firm asserted that the proposal is 
rooted in a flawed understanding of DATs and would impose conditions unaligned 
with national interests, particularly those advocating for the responsible 
growth of the digital asset space. As of this writing, the company’s stock, 
trading under the ticker symbol MSTR, is trading at $185. There has been 
almost no difference since Tuesday’s trading session amid consolidating crypto 
prices. Featured image from DALL-E, chart from TradingView.com

Strategy Calls For Withdrawal Of MSCI’s Exclusion Plan For Digital Asset Treasury Companies

A16z Crypto opened its first Asian office in Seoul, South Korea, led by SungMo 
Park, citing the region’s dominance in global adoption and onchain activity.

A16z Crypto opens office in South Korea as it bets on Asia

XRP price started a fresh decline below $2.10. The price is now struggling and 
faces resistance near the $2.050 pivot level. XRP price started a fresh 
decline below the $2.040 zone. The price is now trading below $2.020 and the 
100-hourly Simple Moving Average. There is a bearish trend line forming with 
resistance at $2.050 on the hourly chart of the XRP/USD pair (data source from 
Kraken). The pair could continue to move down if it settles below $2.00. XRP 
Price Dips Again XRP price attempted a recovery wave above $2.120 but failed 
to continue higher, like Bitcoin and Ethereum. The price started a fresh 
decline below $2.10 and $2.050. There was a move below the $2.00 support 
level. A low was formed at $1.993, and the price is now consolidating losses 
below the 23.6% Fib retracement level of the downward move from the $2.177 
swing high to the $1.993 low. The price is now trading below $2.050 and the 
100-hourly Simple Moving Average. If there is a fresh upward move, the price 
might face resistance near the $2.0350 level. The first major resistance is 
near the $2.050 level. There is also a bearish trend line forming with 
resistance at $2.050 on the hourly chart of the XRP/USD pair. A close above 
$2.050 could send the price to $2.085 and the 50% Fib retracement level of the 
downward move from the $2.177 swing high to the $1.993 low. The next hurdle 
sits at $2.10. A clear move above the $2.10 resistance might send the price 
toward the $2.150 resistance. Any more gains might send the price toward the 
$2.1850 resistance. The next major hurdle for the bulls might be near $2.220. 
More Losses? If XRP fails to clear the $2.050 resistance zone, it could start 
a fresh decline. Initial support on the downside is near the $2.00 level. The 
next major support is near the $1.9850 level. If there is a downside break and 
a close below the $1.9850 level, the price might continue to decline toward 
$1.920. The next major support sits near the $1.880 zone, below which the 
price could continue lower toward $1.820. Technical Indicators Hourly MACD – 
The MACD for XRP/USD is now gaining pace in the bearish zone. Hourly RSI 
(Relative Strength Index) – The RSI for XRP/USD is now below the 50 level. 
Major Support Levels – $2.00 and $1.9850. Major Resistance Levels – $2.050 and 
$2.10.

XRP Price Under Pressure—Can It Survive This Support Test?

A rising ISM index could disrupt traditional crypto cycles, potentially 
leading to unprecedented growth in Bitcoin and Ethereum markets.
The post Tom Lee says ISM strength could set the stage for a new Bitcoin and 
Ethereum supercycle appeared first on Crypto Briefing.

Tom Lee says ISM strength could set the stage for a new Bitcoin and Ethereum supercycle

The MSCI Index is consulting on whether to exclude Bitcoin and other digital 
asset treasury companies that have a balance sheet with more than 50% of their 
assets in crypto.

Cryptocurrency price in GBP