MSCI pauses the exclusion of Bitcoin companies and avoids a wave of forced sales of passive funds

Source: Yellow Original Title: MSCI Pauses Bitcoin Company Exclusion and Avoids Forced Sell-Off Wave of Passive Funds

Original Link: MSCI has decided not to exclude treasury companies involved with Bitcoin and crypto assets from its global equity indices, a move that immediately boosted Strategy shares, which rose over 4% and traded around the $170 level following the announcement.

In a statement released Tuesday night, MSCI said it will not proceed with the proposal to remove so-called digital asset treasury companies from the MSCI Global Investable Market Indexes as part of its February 2026 index review.

The decision comes after months of consultations with institutional investors about whether companies with balance sheets dominated by Bitcoin holdings should remain eligible for inclusion.

The outcome removes short-term pressure on firms like Strategy, whose stock performance and index eligibility have increasingly been linked to their Bitcoin exposure.

MSCI Pauses Exclusion and Maintains Current Treatment

MSCI indicated it will maintain the current treatment for digital asset treasury companies, known as DATCO, in the indices for now.

Companies already included in MSCI indices will remain eligible as long as they continue to meet all other index requirements.

At the same time, MSCI stated it will not increase key index factors, such as the number of shares or inclusion factors for these securities, and will postpone new additions or segment migrations related to companies listed on its preliminary DATCO list.

This list includes companies whose disclosed digital asset holdings represent 50% or more of total assets.

The index provider added that it may update the list if companies revise disclosures related to their digital asset holdings.

Institutional Concerns and Broader Review Ahead

MSCI acknowledged that investor feedback highlighted concerns that some Bitcoin treasury companies resemble investment vehicles more than operational companies, which are traditionally not eligible for inclusion in MSCI equity indices.

However, the firm noted that distinguishing between investment-oriented entities and operational companies holding digital assets as part of their core business requires further analysis.

As a result, MSCI plans to open a broader consultation on the treatment of non-operational companies in general, rather than specifically targeting crypto treasury firms at this stage.

The consultation had attracted considerable market attention because exclusion from MSCI indices could have triggered forced sales by passive funds and index-replicating strategies, especially for large corporate Bitcoin holders.

Market Reaction Focuses on Strategy

The immediate market reaction centered on Strategy, one of the most prominent corporate Bitcoin holders.

Shares rose over 4% following the announcement and traded near $170, reflecting relief that the company’s index status will remain intact, at least until the next review.