Global Index Maker MSCI Defers Decision on Dropping Crypto-Focused Companies
MSCI has decided to maintain the current treatment of companies with significant digital asset exposure in its global indexes after a consultation highlighted concerns about classification, balance sheet volatility, and index construction. This review focused on digital asset treasury companies (DATCOs), which hold large amounts of cryptocurrencies like Bitcoin. Institutional investors expressed concern that some DATCOs resemble investment funds rather than operational businesses, which could affect their index eligibility under existing rules. For now, MSCI will keep these companies eligible for inclusion, deferring any rule changes until at least the February 2026 Index Review. This means current DATCOs in MSCI’s indexes will remain if they continue to meet standard requirements. The rise of companies holding crypto as corporate reserves—pioneered by firms like MicroStrategy—sparked strong investor interest, although recent volatility has narrowed associated premiums. The status and treatment of such firms remain under review as regulators and investors consider whether the crypto treasury model is sustainable or just a temporary trend.
