MSCI Delays Crypto Firm Exclusion, Sparks Market Optimism
4.6 Investments MSCI has postponed its plan to exclude crypto treasury companies from its indexes, keeping current rules in place and launching a broader consultation process. The move sparked optimism and share gains for firms like MicroStrategy.
MSCI has decided to postpone its proposed exclusion of companies holding significant digital assets, such as Bitcoin, from its global indexes. Instead of implementing the exclusion during its February review, MSCI will maintain the current treatment of digital asset treasury companies (DATCOs), allowing them to remain in its indexes as long as they meet existing eligibility requirements. The decision follows feedback from institutional investors and acknowledges the complexity of distinguishing between investment companies and operating companies that hold digital assets as part of their core business. MSCI will launch a broader consultation process to further examine the classification of non-operating companies and gather market input before making any changes. The move has been welcomed by stakeholders in the crypto sector, as it preserves the status of companies with large cryptocurrency reserves in widely tracked equity benchmarks and avoids immediate index-linked passive selling. The announcement sparked optimism among investors, with shares of companies like MicroStrategy experiencing notable gains.
