MSCI Preserves Index Status for Crypto Treasury Companies

MSCI’s Decision Marks a Turning Point for Crypto Treasury Companies

Morgan Stanley Capital International (MSCI) has delivered a significant boost to crypto-linked equities by confirming that digital asset treasury companies will remain included in its global market indexes, at least for the time being. The announcement comes after weeks of speculation and intense investor debate, as market participants feared that a sudden exclusion could trigger massive capital outflows and damage confidence in publicly traded crypto-focused firms.

This decision was not made lightly. MSCI acknowledged growing feedback from institutional investors who argued that the crypto treasury model is still evolving and requires deeper analysis before any sweeping classification changes are enforced.

Strategy Shares React Strongly to the News

The market reaction was immediate and telling. Shares of Strategy, the company led by well-known Bitcoin advocate Michael Saylor and widely regarded as the world’s largest crypto treasury firm, jumped sharply in after-hours trading. Although the stock had dipped during regular trading hours, it reversed course and climbed around 5% once MSCI’s position became public.

The price movement highlighted just how sensitive crypto treasury companies are to index-related decisions. Inclusion in major benchmarks plays a crucial role in maintaining institutional demand, liquidity, and long-term investor confidence.

What MSCI Considers a Digital Asset Treasury Company

MSCI defines digital asset treasury companies, often referred to as DATCOs, as firms where digital assets account for 50% or more of total assets on the balance sheet. This definition places companies like Strategy squarely under the spotlight, as their business models are increasingly intertwined with long-term exposure to Bitcoin and other cryptocurrencies.

Rather than enforcing immediate exclusions, MSCI announced that these companies will undergo a broader and more comprehensive review process aimed at distinguishing between operating businesses and entities whose primary activities resemble investment holdings.

Why MSCI Chose Caution Over Immediate Exclusion

In its official statement, MSCI explained that the broader consultation is intended to preserve consistency with the core objectives of its indexes. These benchmarks are designed to track the performance of operating companies, not entities that function primarily as investment vehicles.

However, MSCI also recognized that the rapid rise of crypto treasury strategies has blurred traditional boundaries. Many companies still generate revenue from software, technology, or other services while simultaneously holding large digital asset positions. This complexity makes a simple, one-size-fits-all exclusion approach increasingly difficult to justify.

Why Index Inclusion Matters for Crypto Stocks

Remaining inside MSCI indexes carries enormous implications. Inclusion ensures eligibility for passive index funds and ETFs, which collectively manage trillions of dollars in assets. These funds automatically allocate capital based on index composition, meaning that exclusion could have forced large-scale selling regardless of a company’s fundamentals.

Analysts estimate that removing major crypto treasury firms from indexes could have erased billions of dollars in passive capital inflows, putting sustained pressure on share prices and weakening institutional participation.

A Broader Signal to Institutional Investors

Beyond individual stocks, MSCI’s move sends a broader message to the market. It suggests that major financial infrastructure providers are not yet ready to push crypto-exposed companies to the sidelines. Instead, they are opting for a more measured approach that balances innovation with index integrity.

This stance may help stabilize sentiment around crypto-related equities, particularly after a volatile period in late 2025 when many crypto treasury stocks experienced sharp drawdowns amid concerns about sustainability and valuation.

The Rapid Growth of Corporate Crypto Treasuries

The rise of digital asset treasuries has been one of the most notable institutional trends of the past two years. More than 190 publicly traded companies now hold Bitcoin on their balance sheets, while dozens of others have diversified into Ether, Solana, and additional altcoins.

For many firms, crypto exposure is no longer a speculative side bet but a core strategic decision tied to long-term views on monetary policy, inflation, and digital finance.

What Comes Next for MSCI and Crypto Treasury Firms

While MSCI’s decision offers temporary relief, it is not the final word. The broader consultation process will likely shape how digital asset treasury companies are classified in future index reviews. Investors, asset managers, and companies themselves will be watching closely, as the outcome could redefine how crypto exposure fits into traditional equity markets.

For now, crypto treasury firms remain firmly in the game — and MSCI’s pause has given them valuable time to prove that their models deserve a lasting place in global indexes.

As institutional interest in crypto continues to grow, choosing a reliable trading platform is more important than ever. BYDFi offers advanced trading tools, deep liquidity, and a secure environment designed for both professional and long-term investors. Start exploring smarter crypto trading with BYDFi today.

Create Answer