MSCI Changes Course on Digital Asset Treasury Companies

MSCI has reconsidered its earlier decision to exclude digital asset treasury companies from its equity indexes. Instead, the organization has decided to retain its current approach while initiating a broader evaluation of how it categorizes firms holding significant amounts of non-operating assets, including cryptocurrencies like Bitcoin.

Key Takeaways

MSCI has reversed its plan to remove digital asset treasury firms from its equity indexes.
The index provider will maintain its current criteria for Digital Asset Treasury Companies (DATCOs).
MSCI is seeking clearer guidelines to distinguish between investment firms and those holding digital assets for operational purposes.
The decision comes after warnings that exclusion could result in substantial market impacts, with potential sell-offs of up to $15 billion across listed crypto treasury companies.

MSCI

MSCI Reassesses Its Treatment of Digital Asset Treasury Firms

On Tuesday, MSCI announced that it would no longer pursue plans to exclude digital asset treasury companies, commonly referred to as DATCOs, from its equity benchmarks. Instead, the index provider has opted to keep its existing approach for firms identified as DATCOs—those with digital asset holdings constituting 50% or more of their total assets.

This decision allows Strategy, a notable digital asset treasury firm, to remain included in MSCI's global benchmarks. Following the announcement, Strategy's shares rose around 6% in after-hours trading, despite a significant drop of 47.5% earlier in 2025.

In a post on X, Strategy expressed its satisfaction with the outcome, stating, “MSCI confirmed Digital Asset Treasury Companies will remain in MSCI Indexes for the Feb 2026 review. A strong outcome for neutral indexing and economic reality.”

MSCI’s Need for Clearer Criteria on Crypto Asset Holdings

MSCI acknowledged feedback from investors expressing concerns that some DATCOs resemble investment funds, which typically do not qualify for inclusion in equity benchmarks. The firm stated, “Distinguishing between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core operations rather than for investment purposes requires further research and consultation with market participants.”

MSCI indicated that establishing new criteria may be necessary to assess eligibility accurately, potentially using financial statements and other relevant indicators as it expands its review beyond just crypto treasury firms.

Reassessment Provides Breathing Room for Digital Asset Treasury Firms

The implications of this revised approach are significant, as index rules can mandate substantial movements within the market. When MSCI initially considered excluding DATCOs in late 2025, industry analysts warned it could lead to a sell-off ranging from $10 billion to $15 billion across numerous listed crypto treasury companies, depending on how much passive capital tracked the affected benchmarks.

In response to the initial exclusion idea, Strategy strongly opposed the proposal in a letter dated December 10, signed by executive chairman Michael Saylor and chief executive Phong Le. They termed the suggestion “misguided” and cautioned that it could lead to “profoundly harmful consequences” for capital markets and the leadership of US digital assets.

Wall Street analysts also attempted to gauge the financial impact. JPMorgan estimated that passive outflows linked to MSCI could hit around $2.8 billion for Strategy if the index provider mandated divestment.

Originally, MSCI had planned to present the findings from its consultations by mid-January 2026, with any adjustments expected during the February 2026 index review. However, Tuesday's decision maintains the status quo while the firm engages in broader discussions about how non-operating companies are classified.