Strategy's Stock Rallies 5% After MSCI Says Will Not Bar DATs 'For the Time Being'

MSCI has decided not to exclude digital asset treasury companies from its global equity benchmarks, at least for now. The index provider announced that it will retain DATs in its global indexes as part of its February 2026 review. This decision comes after extensive consultation with institutional investors who expressed concerns about the implications of excluding companies whose balance sheets are dominated by Bitcoin holdings.

Shares in Strategy, the largest crypto treasury firm, rose more than 4% following the announcement. Strategy holds nearly 673,783 Bitcoin, valued at approximately $63 billion. The company's stock price climbed to around $170, reflecting investor relief that its index inclusion status will remain unchanged for the foreseeable future.

The move avoids an immediate sell-off of shares in DAT companies, which could have been triggered by passive index funds. MSCI acknowledged concerns that some DATs resemble investment vehicles rather than operating companies, a classification issue that it plans to address in a broader review.

Why Did This Happen?

MSCI's decision follows months of consultation with institutional investors. The firm considered whether companies whose balance sheets are largely composed of Bitcoin holdings should remain eligible for inclusion in its market indexes. Many investors had raised concerns that excluding DAT companies could disrupt the market and trigger forced selling by index-tracking strategies.

MSCI said it will maintain the current treatment of DATs for now, allowing companies already in its indexes to remain provided they meet all other index requirements. At the same time, it will not increase key index factors for these securities or include new additions to its DATCO list.

How Did Markets React?

The immediate market response centered on Strategy, one of the most prominent holders of Bitcoin. Its stock rose more than 4% after the announcement, trading near $170. The rally reflects relief among investors who had feared a potential exclusion could trigger significant volatility.

Strategy's performance has been closely tied to the price of Bitcoin and its index eligibility. The firm has been a major corporate Bitcoin holder since 2020, and its inclusion in MSCI indexes has helped sustain demand for its shares.

What Are Analysts Watching Next?

MSCI has announced a broader consultation on the treatment of non-operating companies, which includes DATs. This review is expected to take six to nine months, with potential changes not likely to be implemented before late 2025 or early 2026. The firm emphasized the need for additional analysis to distinguish between investment-oriented entities and operating companies that hold digital assets as part of their core business.

The outcome of this consultation will have significant implications for companies like Strategy, MicroStrategy, and others that have adopted corporate Bitcoin strategies. It will also influence the broader integration of digital assets into traditional financial markets.

Experts are also watching how regulatory developments and accounting standards evolve in the coming years. These changes will affect how companies report their digital asset holdings and may influence future index decisions.

The MSCI decision provides a degree of stability for the sector, giving companies and investors more time to adjust to potential changes. However, the broader market remains closely watching how this consultation unfolds and what it could mean for the future of digital asset treasury strategies.