MSCI’s Latest Move Provides Respite for Crypto Reserve Firms

As January 15 approached, many anticipated a significant change from MSCI regarding the possible removal of crypto reserve companies from its influential indices. Surprisingly, the move has been delayed, with a decision now expected in 2026, offering temporary relief to these companies.

Implications for Key Market Players

MSCI, a prominent entity producing widely-followed stock indices such as those tracked by ETFs, initially suggested sweeping changes impacting companies like DATSS, which are associated with digital asset treasury securities. However, the latest communication reveals that these potential adjustments have been suspended, maintaining the status of crypto reserve companies within key indices for now.

What Does This Mean for the Crypto Sector?

The decision implies that crypto reserves will remain integrated in the main indices, averting a feared exodus of billions from passive investments. Notably, this announcement has buoyed the share price of Strategy (MSTR), which climbed from $157 to an impressive $170 in post-market activities.

MSTR was on the brink of the MNAV 1 mark, sparking fears of a potential Bitcoin sell-off. With the suspension of the delisting, MSTR’s shares could experience further gains, potentially exceeding $189, boosting MNAV significantly. This ensures that the company can resume strategic share sales to fund large BTC purchases.

Despite some worrisome elements in the announcement, bypassing a direct delisting is ultimately positive.

MSCI plans to initiate extensive consultation on reclassifying non-operational firms.

Feedback indicated that some DATCOs might resemble funds unsuitable for inclusion in MSCI Indices and are more focused on investments than operations. Further discussions with market participants are necessary to differentiate these companies based on whether digital assets represent core activities or investment purposes.

For now, DATCOs where crypto assets account for at least half of total assets will retain their current index classifications.