datcos

MSCI Keeps Crypto Treasury Companies in Global Indexes — Win for Strategy

📊 MSCI has decided not to exclude digital asset treasury companies (DATCOs) — firms with large crypto holdings — from its major global equity indexes for now. This ends weeks of market uncertainty and preserves their current index eligibility.

📌 MSCI said it will proceed with a broader consultation to better distinguish between investment‑oriented entities and operating companies that hold digital assets as part of core business activities.

📈 The news lifted Strategy Inc. shares, which rose modestly (around ~5–7%) as passive index funds can continue holding the stock without forced selling pressure.

🔍 DATCOs are defined as companies where digital assets make up ≥50% of total assets — a threshold that had raised concerns among institutional investors and index managers.

💡 By maintaining inclusion, MSCI avoids triggering mechanical selloffs from ETFs and passive funds that track its benchmarks — which had been viewed as a major downside risk for crypto treasury firms.

📌 Why this matters:
▪︎ Supports liquidity and institutional demand for crypto treasury stocks
▪︎ Removes near‑term structural risk tied to index exclusion
▪︎ Opens dialogue on how non‑traditional business models should be treated in mainstream indexes

#CryptoIndexes #DATCOs #ArifAlpha