MSCI Reverses Decision to Exclude Digital Asset Treasury Companies from Stock Indexes
MSCI has abandoned its plan to exclude digital asset treasury companies from its stock indexes, opting instead for a broader review of how it treats companies with large pools of non-operating assets, such as Bitcoin. This decision comes after concerns were raised by investors and market participants about the potential impact of such a move on the companies affected.
The index provider announced on Tuesday that it will maintain its current approach for companies on its tentative list of Digital Asset Treasury Companies, a designation used for companies whose digital asset holdings represent 50% or more of their total assets. This decision is a significant development for companies like Strategy, which had been at risk of being removed from MSCI’s global benchmarks.
Strategy welcomed the decision, with its shares rising about 6% in after-hours trading following the update. The company’s CEO, Michael Saylor, had previously expressed concerns about the potential impact of MSCI’s plan, calling it “misguided” and warning of “deeply damaging consequences” for capital markets and U.S. digital asset leadership.
MSCI Seeks Clearer Criteria for Companies Holding Crypto Assets
MSCI has heard from investors who are concerned that some digital asset treasury companies (DATCOs) resemble mutual funds, which are generally ineligible for inclusion in its equity benchmarks. The company has acknowledged the need for clearer criteria to distinguish between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core business activities.
MSCI may need to develop new standards for assessing suitability, including measures based on financial reports and other indicators, as it expands its scrutiny beyond crypto treasury names. This rethink is important, as index rules can have significant consequences for affected companies, with analysts estimating that passive outflows tied to MSCI alone could reach $10 billion to $15 billion.
Rethinking Index Methodology Buys Time for Digital Asset Treasury Firms
The decision to rethink index methodology buys time for digital asset treasury firms, which had been facing potential exclusion from MSCI’s global benchmarks. The company’s original plan had been to publish the conclusions of its consultation by mid-January 2026, with any changes in the index review to be announced in February 2026.
Tuesday’s about-face leaves the status quo in place while MSCI opens a broader discussion about classification as non-operating companies. This development is a significant win for digital asset treasury firms, which can continue to be included in MSCI’s stock indexes for now. For more information, visit https://cryptonews.com/news/msci-scraps-plan-exclude-digital-asset-treasury-firms/
