MSCI Withdraws Digital Asset Treasury Exclusion Proposal, Boosting MSTR Stock
- MSCI has decided not to implement a proposal that would have excluded digital asset treasury companies (DATCOs) from its indexes.
- The current treatment of DATCOs will remain unchanged, allowing firms with over 50% digital asset holdings to qualify for index inclusion.
- Michael Saylor’s Strategy (MSTR) stock surged approximately 6.6% in after-market trading following the announcement.
- JPMorgan had previously warned that exclusion from MSCI USA or Nasdaq100 indices could force MSTR to sell billions in stocks.
- The firm plans to consult on non-operating businesses due to concerns that some DATCOs may function as investment funds rather than operational entities.
The decision by MSCI alleviates uncertainty for companies like MSTR, which had been at risk of delisting due to their substantial Bitcoin holdings. This clarity is vital for maintaining investor confidence and stability within the market.
Following MSCI’s ruling, MSTR’s stock performance reflects a positive market reaction, rebounding significantly after fears of potential exclusion were addressed. (Source)
