Saylor Criticizes MSCI’s Crypto Index Test

Michael Saylor, chairman and chief executive of MicroStrategy, publicly criticized MSCI this week, calling the index provider’s experimental test of crypto-linked benchmark strategies flawed and misleading for investors.

Saylor argued MSCI’s trial distorted the performance and risk profile of bitcoin exposure in traditional indexes. He disputed the choice of instruments used to model bitcoin, the short historical window for backtesting, and the treatment of custody and settlement mechanics. He said those inputs produced results that understated long-term returns and overstated short-term volatility.

Saylor noted the simulation relied largely on futures contracts and short samples of historical data rather than spot-market returns and longer-term records. He said futures introduce roll costs and basis effects that differ from outcomes for investors holding spot bitcoin over a long horizon. He also challenged assumptions about transaction costs and rebalancing frequency, saying they penalized bitcoin allocations in ways that may not apply to many institutional holders.

MSCI described the results as exploratory and has not changed any official index methodology based on the trial. The firm tested multiple index constructions to examine resilience, tracking error and liquidity under different market scenarios and has been consulting clients about whether and how to include digital assets in broader benchmarks.

MicroStrategy has positioned itself as a large corporate holder of bitcoin and an advocate for using digital assets in corporate treasuries. Saylor linked his critique to that role and wrote, “Benchmarks are the backbone of many institutional mandates,” urging index providers to use representative instruments, realistic custody assumptions and longer sample periods when evaluating crypto-inclusive strategies.

Industry participants said methodology debates are common when new asset classes are considered for mainstream indexes. The choice to model exposure with futures versus spot can change simulated performance through costs and tracking differences. Supporters of including crypto point to improving custody, market infrastructure and regulatory clarity; critics highlight volatility, market fragmentation and operational challenges.

The exchange between Saylor and MSCI reflects ongoing discussion among custodians, exchanges, asset managers and index providers about how technical choices in testing and construction affect index outcomes and potential capital flows.