A major index methodology debate is emerging after a leading structured finance company with significant bitcoin holdings urged one of the world’s largest benchmark providers to reconsider a proposal that could exclude digital asset treasury firms from broad equity indices. The company argued that removing firms with more than half of their assets in bitcoin would undermine index neutrality and introduce inconsistencies across jurisdictions where digital asset accounting varies widely. Under United States accounting standards, digital assets must be marked to fair value, while companies reporting under international standards may value them at cost. This divergence means two firms with identical exposures could receive different index treatment. Analysts reviewing the situation note that the issue highlights a broader challenge as equity benchmarks consider how to incorporate companies whose digital asset strategies have become material to balance sheet composition. The company said the exclusion threshold was too broad and pointed out that many large digital treasury holders also operate businesses that extend well beyond asset accumulation, including data center infrastructure and structured financial services.
The proposal under consideration could significantly influence companies that maintain large bitcoin reserves, with estimates suggesting that some firms could face meaningful passive outflows if exclusion occurs. Market analysts have observed that share prices of certain digital asset focused companies may already reflect the possibility of reclassification, though the broader implications for equity index design remain under discussion. Industry participants have highlighted parallels to sectors where commodity reserves heavily influence balance sheet value, arguing that equity benchmarks have historically accommodated such structures without imposing category specific restrictions. Instead of redefining eligibility for core indices, the company recommended that benchmark providers offer optional versions that omit digital asset treasury firms, mirroring screening approaches already used for sectors such as tobacco and energy. The conversation underscores how digital asset adoption among publicly traded companies is shaping new considerations for index governance and transparency. As benchmark providers prepare to announce decisions in the coming months, institutional investors are monitoring how potential changes may influence portfolio construction and the interaction between traditional equity markets and companies with significant exposure to digital assets.
