Ripple President Monica Long Says Company Will Stay Private Despite $40 Billion Valuation

MSCI has decided not to exclude digital asset treasury companies from its global indexes for now. The index provider stated it will not implement the proposal to exclude these firms as part of the February 2026 Index Review.

The decision follows a consultation period that raised concerns among institutional investors. MSCI noted that digital asset treasury companies might exhibit characteristics similar to investment funds, prompting further research and consultation.

Strategy, the largest corporate holder of Bitcoin, saw its shares rise in after-hours trading. The stock climbed over 6% following the announcement.

Why Did This Happen?

MSCI's decision reflects feedback from market participants, including institutional investors and industry players. The index provider acknowledged that the distinction between investment companies and operating firms holding digital assets requires further study.

Strategy submitted a formal response to MSCI, arguing that its digital asset strategy supports its operating business rather than replacing it. The company also warned that the proposed exclusion could distort capital markets and discourage innovation.

How Did Markets React?

Strategy's shares rose 6.6% in after-hours trading after the announcement. The company is part of the Nasdaq 100, MSCI USA, and MSCI World indexes.

The decision to retain Strategy and other digital asset treasury companies in MSCI's indexes provides a reprieve for the sector. It also signals that crypto is forcing established institutions to reconsider traditional definitions of operating companies.

JPMorgan analysts had previously warned that removing Strategy from major indexes could result in $2.8 billion in passive outflows. The firm's stock has lost nearly two-thirds of its value since its peak in July.

What Are Analysts Watching Next?

The broader consultation by MSCI includes non-operating companies. The index provider aims to ensure consistency and alignment with its objective of measuring the performance of operating companies according to MSCI's stated goals.

Ripple President Monica Long has stated that the company will remain private despite its $40 billion valuation. This decision was made after a November share sale that attracted attention from investors including Citadel Securities and Fortress according to Bloomberg reports.

The continued inclusion of digital asset treasury companies in MSCI's indexes ensures that these firms remain accessible to passive index funds. This helps sustain demand and liquidity for crypto-related equities as reported by industry analysts.

Analysts are watching how the broader market will react to the inclusion of digital asset treasury companies in major indexes. They are also monitoring the potential for regulatory changes that could impact the sector according to financial market observations.

Strategy and most other digital asset treasury companies saw their shares decline in the second half of 2025 as the sustainability of their strategies was questioned. The recent decision by MSCI offers a degree of stability for these firms.

The decision also highlights the ongoing debate about the role of digital assets in traditional financial markets. It raises questions about whether these companies should be treated as investment funds or operating businesses according to industry analysis.

The market is also watching for further developments in the regulatory landscape. The outcome of the SEC v. Ripple Labs case could have significant implications for the future of XRP ETFs and other crypto-related investment products.