Strategy Shares Surge as MSCI Halts Plan to Exclude Digital Asset Firms
Key Developments
- Strategy's Stock Performance: Shares of Strategy, formerly MicroStrategy, jumped over 6% in after-hours trading following MSCI's announcement.
- MSCI's Decision: MSCI will not proceed with its proposal to exclude digital asset treasury companies (DATCOs) from its benchmark indexes during its February 2026 review.
Market Implications
The decision means Strategy will remain in MSCI’s Global Investable Market Indexes with other firms that hold Bitcoin. This comes after Strategy's stock fell about 4% on Tuesday, closing near $158, significantly below its July 2025 peak.
MSCI plans to consult on the classification of non-operating and investment-oriented companies, addressing concerns that some DATCOs resemble ineligible investment funds.
Until this review is completed, DATCOs with digital assets making up at least 50% of their total assets will stay in the indexes, though MSCI will pause any increases in share counts or inclusion factors.
The initial proposal raised concerns of $8.8 billion in potential investment outflows and was viewed as a threat to Strategy's funding and stock performance amid Bitcoin's volatility.
Strategy had urged MSCI's Equity Index Committee to reconsider, arguing the proposal unfairly categorized operational digital asset treasury companies as investment funds, posing market disruption risks and conflicting with US digital finance policy.