MSCI Partners with Digital Asset Treasury Company
In a significant move for Bitcoin-focused companies and the entire digital asset landscape, global index provider MSCI has formed a partnership with Digital Asset Treasury Company (DATCO). This decision means they won’t be excluded from the flagship index.
For now, MSCI confirmed that the treatment of these companies will remain unchanged. DATCOs already part of MSCI indexes will stay included, provided they continue to satisfy current eligibility criteria.
MSCI acknowledged that institutional investors had voiced worries regarding the resemblance of some digital asset treasury companies to investment funds, which have typically faced exclusion from the index.
The organization also noted that more research and market analysis are required to differentiate between investment-centric entities and operating companies that include digital assets as a core facet of their business.
Consequently, MSCI will hold off on making any changes concerning the exclusions, additions, or size of DATCOs for now, while initiating a wider consultation on how to manage non-operating companies, as stated in their announcement.
This development addresses concerns in the financial and crypto markets that companies like Strategy, which possess a significant portion of their assets in Bitcoin and other digital assets, might be dropped from key global equity benchmarks such as the MSCI All Country World Index and the Emerging Markets Index.
The proposal, initially brought to light by MSCI late last year, would categorize DATCOs—public companies with over 50% of their assets in digital assets—as more akin to fund-like entities rather than operational businesses, making them ineligible for inclusion in the core index.
This framework drew criticism from various industry insiders and supporters.
Response from Strategy and Industry Backlash
Strategy, the largest Bitcoin-listed financial company, along with other DATCOs, found themselves at the forefront of the debate.
They formally urged MSCI to retract the proposal, arguing that excluding firms solely based on asset composition was “misguided” and “arbitrary,” potentially threatening the neutrality of the index.
In an open letter to the MSCI Stock Index Committee, Strategy emphasized that DATCOs are operational companies and shouldn’t be evaluated solely on their Bitcoin holdings.
Groups like Bitcoin For Corporations also rallied support, labeling the attempt as discriminatory and warning that such exclusion could prompt billions in passive outflows and significant market turbulence.
Some analysts indicated that Strategy alone might experience up to $2.8 billion in capital flight if MSCI proceeded with the exclusion, while broader estimates for forced sales across crypto government bonds were considerably higher.
This recent decision removes that uncertainty, solidifying DATCO’s place within MSCI’s indexes and averting the looming threat of index-linked passive selling as a structural market risk.
The market’s response was quick, with relief buying seen in leading digital asset stocks, including Strategy’s shares.
MSTR stock surged more than 7% in after-hours trading following the news.
