MSCI Maintains Inclusion of Crypto Treasury Companies, Easing Index-Linked Market Concerns

MSCI Inc. (NYSE: MSCI) announced on Jan. 6 that it will retain digital asset treasury companies in its global benchmarks, including the MSCI Global Investable Market Indexes, for the time being. The decision, reached after an investor consultation, removes a key source of uncertainty for companies with large cryptocurrency holdings. The firm cited the need for further analysis to distinguish between firms holding digital assets for operating purposes and those functioning as investment vehicles.

The move follows a proposal introduced in late 2025 that aimed to exclude companies with more than half of their assets in cryptocurrencies. This was due to concerns about volatility and the potential distortion of benchmark risk profiles. The decision to delay action has been welcomed by equity analysts, who had warned of significant capital outflows from passive investment vehicles. One analyst estimated potential forced selling of up to $2.8 billion if exclusion had occurred.

The decision has had an immediate effect on companies like Strategy (NASDAQ: MSTR), which holds large amounts of Bitcoin on its balance sheet. By maintaining index inclusion, MSCI has helped protect Strategy from potential valuation pressure and capital outflows. The firm had previously faced risks of exclusion due to its aggressive Bitcoin accumulation strategy.

Why Did MSCI Decide Against Immediate Exclusion?

MSCI cited the need for further research to clearly define the distinction between digital asset treasury companies and traditional investment entities. The firm noted that some DATCOs exhibit characteristics similar to investment funds, which are ineligible for index inclusion. This uncertainty led to a decision to delay any exclusion until the firm can refine its criteria.

The consultation process revealed strong concerns from institutional investors and asset managers. Many argued that excluding companies with digital assets would be premature, especially given the evolving nature of corporate Bitcoin strategies. MSCI's decision reflects a cautious approach, allowing more time to observe market developments and regulatory changes.

MSCI has also highlighted the importance of ensuring index consistency with long-term objectives. The firm will continue to monitor DATCOs and may update its framework as necessary to reflect changes in company disclosures and market conditions.

What Impact Could This Have on Equity and Crypto Markets?

The decision to retain DATCOs has had a positive effect on market sentiment. Strategy shares rose nearly 4% in after-market trading following the announcement. The firm had previously faced a sharp decline in its stock price due to uncertainty around its index inclusion and the value of its Bitcoin holdings.

Analysts believe the decision has helped stabilize expectations around capital flows in both equity and digital asset markets. The potential for forced selling, which could have disrupted the broader crypto market, has been averted for now. This provides a degree of clarity for investors and reduces the risk of a sharp drop in the value of companies with large crypto reserves.

The decision also has broader implications for the market. With the rise of corporate Bitcoin strategies, the inclusion of such companies in major indexes has become a key factor in their access to passive capital. MSCI's decision sets a precedent that other index providers may follow, potentially influencing how the financial industry treats digital assets in the future.

What Are Analysts Watching for Next?

MSCI has indicated that it will continue to evaluate the treatment of digital asset treasury companies. The firm will monitor developments in accounting standards and regulatory frameworks as it refines its approach. This suggests that the current decision is a temporary reprieve rather than a final outcome.

Analysts are also watching how the broader market responds to the decision. While the immediate risk of a forced sell-off has been mitigated, long-term uncertainty remains. The performance of companies like Strategy will depend on continued investor confidence and the evolution of Bitcoin's price.

The decision also raises questions about the future of index inclusion for other companies with significant crypto holdings. MSCI's next major index review in February 2026 will be a key event to watch, as it could lead to changes in the treatment of DATCOs. Until then, the market will continue to monitor developments and assess the potential impact of future decisions.