Strategy stock soars as MSCI pauses plan to drop digital asset treasury firms
Key Takeaways
The decision allows Strategy, formerly known as MicroStrategy, to remain in MSCI’s Global Investable Market Indexes alongside other firms that hold Bitcoin on their balance sheets.
While MSCI maintains the current treatment of DATCOs for now, there is ongoing uncertainty over whether these firms will continue to qualify for index inclusion in the future.
The index provider plans to launch a wider consultation on how to classify non-operating and investment-oriented companies, after investors warned that some resemble investment funds, which are ineligible for MSCI equity indexes.
Until that review is complete, DATCOs identified as holding digital assets equal to at least 50% of total assets will remain in the indexes if eligible, though MSCI will freeze any increases in share counts or inclusion factors and defer additions or size-segment upgrades.
The proposal to exclude DATCOs was introduced last October, raising concerns it could trigger up to $8.8 billion in investment outflows.
The change was also seen as a potential risk to Strategy’s future funding and stock performance, which has been volatile amid Bitcoin’s decline and market instability.
In response, Strategy urged MSCI’s Equity Index Committee to rethink the proposal, arguing it unfairly treats operational digital asset treasury companies as investment funds and risks market disruption while conflicting with US digital finance policy.
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The decision allows Strategy, formerly known as MicroStrategy, to remain in MSCI’s Global Investable Market Indexes alongside other firms that hold Bitcoin on their balance sheets.
While MSCI maintains the current treatment of DATCOs for now, there is ongoing uncertainty over whether these firms will continue to qualify for index inclusion in the future.
The index provider plans to launch a wider consultation on how to classify non-operating and investment-oriented companies, after investors warned that some resemble investment funds, which are ineligible for MSCI equity indexes.
Until that review is complete, DATCOs identified as holding digital assets equal to at least 50% of total assets will remain in the indexes if eligible, though MSCI will freeze any increases in share counts or inclusion factors and defer additions or size-segment upgrades.
The proposal to exclude DATCOs was introduced last October, raising concerns it could trigger up to $8.8 billion in investment outflows.
The change was also seen as a potential risk to Strategy’s future funding and stock performance, which has been volatile amid Bitcoin’s decline and market instability.
In response, Strategy urged MSCI’s Equity Index Committee to rethink the proposal, arguing it unfairly treats operational digital asset treasury companies as investment funds and risks market disruption while conflicting with US digital finance policy.
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