MicroStrategy (MSTR) shares jumped about 6% Wednesday after MSCI said it will keep so-called digital asset treasury companies (DATCOs) in its indexes — ending speculation the Bitcoin-heavy firm could be booted from major benchmarks. What MSCI decided On Jan. 6 MSCI confirmed it will not proceed with a proposal to remove DATCOs from the MSCI Global Investable Market Indexes during its February 2026 review. Companies that hold 50% or more of their assets in digital currencies will therefore remain classified as DATCOs. —but with an important twist While MSCI stopped short of delisting these firms, it did change how index inclusion reacts to share issuance. Historically, when MicroStrategy issued new shares, MSCI adjusted index share counts so index funds were effectively forced to buy a proportion of those new shares (roughly 10% in many funds), creating automatic demand that helped the company raise capital and expand its Bitcoin holdings. Bull Theory analysts illustrated this with an example: if MSTR issued 20 million shares at $300, index-driven buying could translate into roughly $600 million of forced purchases. Under the new rule MSCI will no longer increase the index share count when firms issue new stock. That means index funds won’t be automatically obliged to buy newly issued MSTR shares, forcing the company to seek private or strategic buyers instead. The practical result: potentially less capital raised on share offerings and fewer incremental Bitcoin purchases tied to equity raises. Market context and competitive angle The change comes as MicroStrategy has been a popular way for investors to obtain passive exposure to Bitcoin; its stock gains over recent years mirrored the company’s large corporate Bitcoin holdings. Market commentator Crypto Rover pointed to MSCI’s historic ties to Morgan Stanley and noted timing could be material: Morgan Stanley recently filed for a spot Bitcoin and Solana ETF, a move that positions the bank’s product as a direct competitor for investors who currently use MSTR for crypto exposure. Rover warned the MSCI adjustment could make share dilution more punitive for MicroStrategy—without the automatic index-driven buyers, dilutive issuances might hit the stock harder and push investors toward spot-crypto ETFs instead. Market reaction and price The announcement eased some short-term fears that had helped drive crypto and Bitcoin prices lower during bouts of uncertainty (including a slump tied to index-exclusion worries on Oct. 10). At the time of writing MSTR is trading around $166, recovering slightly from a 16-month low near $150 hit last Friday. Image credit: DALL-E; chart: TradingView.com Read more AI-generated news on: undefined/news

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