The MSCI Index Decision and Its Implications for Crypto-Holding Stocks

The MSCI Index's recent decision to pause its proposed exclusion of digital asset treasury companies (DATCOs) has sent ripples through the crypto and traditional finance sectors. This move, announced in January 2026, defers a broader review of how DATCOs-companies holding 50% or more of their assets in cryptocurrencies-are classified within global equity benchmarks. For investors, the decision underscores the growing tension between regulatory scrutiny and the strategic innovation of crypto-holding stocks. As DATCOs like MicroStrategy (MSTR), BitMine Immersion (BMNR), and Marathon Digital Holdings (MARA) continue to scale their digital asset portfolios, the question remains: How can these firms balance regulatory uncertainty with long-term value creation?

Regulatory Uncertainty and MSCI's Stance

MSCI's initial proposal to exclude DATCOs from its global indexes was rooted in the argument that such companies operate more like investment funds than traditional businesses. The firm cited concerns about index volatility and the difficulty of distinguishing DATCOs from entities using crypto as part of their core operations. However, after a consultation period ending in December 2025, MSCI opted to maintain the status quo, allowing DATCOs to remain in its benchmarks. This decision was influenced by investor feedback, including arguments from the crypto industry that excluding DATCOs would limit market access to a high-growth, innovative sector.

The pause in exclusion reflects broader regulatory ambiguity. While the U.S. Financial Accounting Standards Board (FASB) has allowed companies to report crypto holdings at fair market value since late 2023, global standards remain fragmented. MSCI's deferral to a February 2026 review highlights the need for clearer guidelines, particularly as DATCOs now hold $137.3 billion in digital assets.

Strategic Positioning of Top DATCOs

Despite regulatory uncertainty, leading DATCOs have adopted aggressive strategies to maximize long-term gains. MicroStrategy, the pioneer of the crypto treasury model, exemplifies this approach. In 2025, the company acquired an additional 10,624 BTC for $963 million, bringing its total holdings to 660,624 BTC-valued at $60 billion. MSTR funds these purchases through equity and preferred share issuances, while maintaining a $1.44 billion reserve to buffer against price volatility. Its business model, which mirrors traditional financial institutions by offering equity and fixed-income products backed by Bitcoin, challenges the notion that DATCOs are passive investment vehicles.

BitMine Immersion (BMNR) has taken a different tack, focusing on Ethereum. The firm's acquisition of 138,452 ETH in 2025-valued at $435 million-elevated its holdings to 3.86 million ETH, or 3.2% of Ethereum's circulating supply. BMNR's chairman, Tom Lee, has emphasized Ethereum's post-Fusaka upgrade potential and the macroeconomic tailwinds of Federal Reserve rate cuts, which could drive ETH's performance in 2026. Additionally, BMNR benefits from Ethereum's Proof-of-Stake model, generating yield through staking-a feature absent in Bitcoin-based DATCOs.

Marathon Digital Holdings (MARA) combines mining operations with treasury acquisitions, leveraging proceeds from mining and debt/equity issuance to expand its Bitcoin holdings. This hybrid model reduces reliance on stock issuance and diversifies capital sources, mitigating some of the risks associated with equity dilution.

Implications for Investors

The MSCI decision has immediate implications for investor sentiment. By allowing DATCOs to remain in global indexes, MSCI has preserved liquidity for these stocks, which are now integral to passive investment strategies. For example, Strategy (MSTR) surged 6% following the announcement, reflecting market relief. However, the decision also introduces uncertainty: If MSCI revisits the exclusion in 2026, forced selling by index-tracking funds could create short-term volatility.

Long-term investors, however, may view this as an opportunity. DATCOs are leveraging traditional capital markets to scale crypto exposure, offering indirect access to digital assets without the complexities of direct ownership. For instance, MSTR's $60 billion Bitcoin reserve provides a tangible asset base, while BMNR's staking yields enhance returns. These strategies align with broader trends, including the U.S. government's push for a Strategic Bitcoin Reserve and expanded crypto access in retirement accounts.

Future Outlook

The coming months will be critical for DATCOs. MSCI's February 2026 review could redefine index eligibility criteria, potentially introducing stricter thresholds or new classifications for digital asset holdings. Meanwhile, regulatory developments-such as the SEC's stance on crypto ETFs and international accounting standards-will shape the sector's trajectory.

For DATCOs, the key to long-term success lies in balancing innovation with transparency. Companies must demonstrate that their operations extend beyond mere asset holding, emphasizing revenue streams, corporate governance, and risk management. As noted by Strategy, the 50% threshold is arbitrary and fails to account for the dynamic nature of crypto markets.

Conclusion

The MSCI decision underscores a pivotal moment for crypto-holding stocks. While regulatory uncertainty persists, DATCOs are strategically positioning themselves to capitalize on digital asset growth. By diversifying capital structures, leveraging staking yields, and advocating for their operational legitimacy, these firms aim to bridge the gap between traditional and crypto markets. For investors, the challenge lies in navigating short-term volatility while recognizing the long-term potential of a sector poised to redefine global finance.