MSCI "Digital Asset Company Index Exclusion Postponed"…Strategy Index Maintained for Now

Source: BlockMedia Original Title: MSCI “Digital Asset Company Index Exclusion Postponed”…Strategy Index Maintained for Now Original Link: MSCI has postponed its plan to exclude companies with a high proportion of digital assets from major stock indices. However, it announced that it will undertake a broad review of companies holding non-operating assets, leaving open the possibility of future changes to the criteria.

Digital Asset Holding Companies Remain in the Index for Now

MSCI issued a statement confirming that it will maintain its existing inclusion policy for so-called ‘digital asset treasury companies’ that hold large amounts of digital assets. As a result, companies holding more than 50% of their assets in digital assets will remain in MSCI’s global indices for the time being.

Strategic companies holding over $60 billion worth of Bitcoin were not excluded from the index with this decision. Although their stock prices have fallen about 60% over the past year, their share prices increased by approximately 5% in after-hours trading following this news.

MSCI initially sought market opinions on whether companies with excessive digital asset holdings align with the index’s characteristics. This decision is a measure to temporarily defer the controversial plan.

Broad Consultation on Non-Operating Asset Companies Anticipated

However, MSCI clarified that it has not halted its review of digital asset companies overall. The company stated in a release that it will conduct broader consultations regarding companies holding non-operating assets.

MSCI explained, “Concerns have been raised by investors regarding some digital asset treasury companies that resemble investment firms.” It added, “Further research and discussions with market participants are needed to distinguish companies holding non-operating assets like digital assets from those with core operational holdings for investment purposes.”

Additionally, MSCI indicated that additional inclusion criteria, such as financial statement-based metrics, may be necessary to assess the eligibility of these companies for index inclusion.