TL;DR

MSCI decided to keep the current treatment of companies with digital asset treasuries, halting the exclusion of Strategy and other firms from its indexes.

An index removal would have triggered automatic selling by passive funds; Strategy would have taken a significant hit due to the weight of BTC on its balance sheet.

MSCI will review the criteria used to distinguish operating companies from financial vehicles; for now, it will keep the DATCO category for firms with more than 50% of assets in crypto.

MSCI decided not to change, for now, the treatment of companies with digital asset treasuries within its major equity indexes. The decision blocked a regulatory shift that would have excluded Strategy and similar firms, and it sparked an immediate market reaction. Strategy shares rose nearly 6% in after-hours trading, following a session marked by precautionary selling amid fears of an adverse outcome.

A forced removal from key indexes would have triggered automatic selling by passive funds, reducing structural demand. Strategy sits at the center of the debate due to the scale of its Bitcoin holdings and its weight in index-tracked portfolios. For the market, an exclusion would have produced mechanical effects rather than discretionary ones.

MSCI Needs More Time and New Criteria

MSCI said it needs further research and consultation before redefining how it classifies companies whose balance sheets are dominated by digital assets. The index provider acknowledged the difficulty of separating operating companies from entities that function, in practice, as investment vehicles, even when they retain a traditional corporate structure. In that context, MSCI noted that new eligibility criteria may be required, potentially based on financial statements or other objective indicators.

While that review is underway, the current treatment will remain unchanged. MSCI groups these firms under the category of “digital asset treasury companies,” defined as companies with digital asset exposure equal to or greater than 50% of total assets. Strategy clearly fits that definition.

Analysts viewed the news as a truce rather than a final resolution. TD Cowen described the decision as a positive surprise and maintained a buy rating on Strategy with a $500 price target. Benchmark also highlighted the favorable near-term impact and kept an optimistic outlook, with a $705 target. Both agree that the methodological debate remains unresolved and that the outcome will depend on how MSCI redraws the line between operating companies and financial vehicles.

Relief for Crypto-Focused Firms

The effect extended to other companies with similar treasury strategies. Bitmine Immersion, Sharplink, and Twenty One Capital posted modest gains after the announcement. The market read the decision as a pause in immediate risk. As more companies adopt Bitcoin as a core treasury asset, index providers will have to decide what these structures actually represent.

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Filed under: News - @ January 7, 2026 12:17 pm