MSCI's Decision and Its Implications for Bitcoin Treasury Companies: Index Inclusion as a Structural Tailwind for DATCOs

The recent decision by MSCI to retain Digital Asset Treasury Companies (DATCOs) in its global equity indices marks a pivotal moment for Bitcoin treasury firms and the broader cryptocurrency market. By avoiding a proposed exclusion of DATCOs-public companies holding over 50% of their assets in digital assets-MSCI has preserved a critical structural tailwind for these entities, reinforcing their role as institutional-grade vehicles for Bitcoin adoption. This decision, announced in January 2026 as part of the firm's February 2026 Index Review, underscores the growing institutional acceptance of corporate-held Bitcoin while deferring a broader debate over how to classify and treat such entities in traditional equity benchmarks.

The DATCO Model: A New Paradigm in Corporate Treasury Strategy

DATCOs, exemplified by firms like MicroStrategy (MSTR), represent a novel corporate structure where digital assets are treated as strategic reserves rather than incidental holdings. These companies raise capital through equity or debt and deploy funds to accumulate cryptocurrencies, creating a feedback loop that drives net asset value (NAV) growth and enables further accumulation. Unlike crypto miners or ETFs, DATCOs actively manage their portfolios through strategies like staking and yield generation, often trading at premiums to their NAV due to perceived upside potential.

MSCI's decision to maintain DATCOs in its indices ensures these firms remain eligible for inclusion in passive index funds, which are critical liquidity drivers. For instance, MicroStrategy, with over $60 billion in Bitcoin holdings, would have faced a potential $2.8 billion capital outflow had it been excluded, according to Bloomberg analysts. Such forced selling could have exacerbated market volatility, a risk MSCI explicitly acknowledged in its consultation process.

Index Inclusion as a Structural Tailwind

The continued inclusion of DATCOs in MSCI's Global Investable Market Indexes provides a direct structural benefit by sustaining institutional demand for Bitcoin. Passive index funds, which track these benchmarks, are estimated to account for 10–15% of daily Bitcoin trading volume. By avoiding a sudden exclusion, MSCI has prevented a destabilizing withdrawal of this capital, preserving a steady flow of institutional buying power.

This decision also aligns with broader trends in corporate Bitcoin adoption. Companies like MicroStrategy and Marathon Digital Holdings (MARA) have positioned themselves as "Bitcoin treasuries," leveraging their balance sheets to accumulate the asset as a hedge against inflation and a store of value. MSCI's stance signals to investors that DATCOs are not merely speculative plays but entities with a legitimate role in diversified portfolios, even as debates over their classification persist.

Regulatory and Market Implications

While the immediate risk of exclusion has been averted, MSCI has initiated a broader consultation on how to treat non-operating companies in its indices-a move that could reshape the DATCO landscape in the medium term. The firm emphasized the need to distinguish between investment funds and operating entities, a distinction that remains blurry for DATCOs given their reliance on capital-raising mechanisms like convertible bonds. This ambiguity highlights the regulatory challenges of integrating digital assets into traditional financial frameworks.

For now, the decision has been widely welcomed by the market. Shares of DATCOs surged in after-hours trading following the announcement, with MicroStrategy's stock jumping over 6%. This reaction underscores the market's recognition of index inclusion as a critical factor in DATCO valuations. However, risks remain: DATCOs are highly sensitive to crypto price swings and leverage-driven capital-raising strategies, which could amplify losses during downturns.

Conclusion: A Win for Institutional Bitcoin Adoption

MSCI's decision to retain DATCOs in its indices is a significant victory for Bitcoin treasury companies, reinforcing their role as bridges between traditional finance and the crypto ecosystem. By preserving index inclusion, MSCI has provided these firms with stability and legitimacy, ensuring continued institutional demand for Bitcoin. Yet, the broader consultation signals that the debate over DATCOs' place in equity benchmarks is far from over. For investors, the decision reaffirms that structural factors-like index inclusion-remain pivotal in shaping the trajectory of Bitcoin's institutional adoption.