TLDR
- MSCI has decided not to exclude Bitcoin treasury companies from its global equity indexes.
- Companies like Strategy will remain in MSCI indexes under the current eligibility criteria.
- MSCI will conduct further consultation to assess how to classify digital asset-heavy firms.
- Strategy argued that excluding firms based on Bitcoin holdings would be arbitrary and misleading.
- MSCI acknowledged investor concerns and stated that more research is needed before making changes.
MSCI has confirmed that Bitcoin-focused companies such as Strategy will remain in its global equity indexes following a completed review. The decision ends months of concern across the crypto market as MSCI holds off on proposed exclusions. This move ensures that affected companies continue under existing eligibility rules without changes to their index inclusion.
Strategy Maintains Index Status After Review
Strategy, the largest Bitcoin treasury company, will stay in MSCI indexes as the firm meets current inclusion requirements. MSCI reviewed whether digital asset treasury companies (DATCOs) resemble funds, which are excluded from core indexes. The index provider decided that more market input is needed before any changes.
MSCI acknowledged investor concerns but will not implement exclusions or adjustments for now as research continues. It plans a broader consultation focused on classifying non-operating entities holding digital assets. The firm will consult industry participants to guide future decisions.
This decision follows opposition from companies like Strategy, which said the proposal misclassified active businesses as passive funds. Strategy had submitted formal feedback to MSCI urging them to reconsider the criteria. In a public statement, Strategy said asset composition alone is “an arbitrary basis for exclusion.”
MSCI Responds to Market Feedback
MSCI said it received detailed responses from institutional investors and market participants regarding DATCO classification. These groups expressed concern that forced reclassification could distort index neutrality and fairness. As a result, MSCI has decided to delay any action.
The index provider emphasized that the current approach remains in place until further consultation is complete. “We will continue to assess based on eligibility criteria currently applicable,” MSCI said in its announcement. Changes, if any, will only follow after deeper analysis.
Feedback highlighted challenges in separating operating companies from investment vehicles based only on digital asset holdings. MSCI admitted the complexity of this issue and aims to build a framework with clearer definitions. Therefore, it will seek more input before updating index methodologies.
Market Reaction and Interim Status
The market welcomed the news as shares of Bitcoin-heavy companies responded immediately in after-hours trading. Shares of Strategy (MSTR) rose over 7% after MSCI released its decision. Other DATCOs saw similar buying interest.
Analysts had warned of potential capital flight if MSCI excluded such firms. Estimates projected up to $2.8 billion in passive outflows from Strategy alone. Broader selloffs could have affected the entire crypto-treasury sector.
The proposed framework would have treated companies with over 50% of assets in Bitcoin as fund-like and excluded them. That policy is now on hold as MSCI commits to further study. No additions or exclusions will occur for DATCOs at this time.
The company said it will provide updates once the consultation is concluded and results reviewed. Meanwhile, current constituents such as Strategy will stay in MSCI indexes under existing rules.
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