MSCI Reverses Stance on Crypto Companies in Global Indexes

Decision Boosts Crypto-Related Stocks

Morgan Stanley Capital International (MSCI) has decided to maintain digital asset treasury companies (DATCOs) in its global indexes, reversing previous plans to exclude them ¹

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Source 2

https://investasi.kontan.co.id/news/msci-batalkan-rencana-keluarkan-perusahaan-treasury-aset-digital-dari-indeks

. This decision comes as a positive development for companies holding crypto assets on their balance sheets, particularly Strategy, whose stock surged 5% in after-hours trading following the announcement ¹

Source 1

https://investasi.kontan.co.id/news/msci-tetap-masukkan-perusahaan-treasury-kripto-ke-indeks-saham-strategy-menguat

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Background and Market Reaction

The decision to keep DATCOs in MSCI indexes was made after careful consideration and consultation. Strategy's stock had initially dropped 4.1% during regular trading hours but recovered strongly post-announcement ¹

. This market reaction underscores the significance of MSCI's index inclusion for companies with significant cryptocurrency holdings.

Future Index Methodology Review

Instead of excluding DATCOs, MSCI will now conduct a broader review of how non-operational companies are treated in their indexes ²

. This review aims to ensure that the index methodology accurately reflects the evolving financial landscape, particularly in the digital assets space.

Implications for Crypto Market

The decision is seen as a positive signal for companies involved in digital assets, as inclusion in major indexes like MSCI can enhance their visibility and attract institutional investors. The market's positive reaction to the news highlights the growing interconnectedness between traditional financial indexes and the cryptocurrency market.