MSCI has dropped a proposal to exclude companies that hold large amounts of digital assets on their balance sheets from its global equity indexes and will instead launch a broader review of index eligibility rules, according to Reuters.
The decision affects so-called digital asset treasury companies, including Strategy, formerly known as MicroStrategy, whose balance sheets are heavily weighted toward cryptocurrencies.
Market reaction and scope
Shares of Strategy rose following the announcement, as investors reacted to the prospect that such companies would remain eligible for inclusion in widely tracked MSCI benchmarks for now.
MSCI had previously outlined plans to classify companies holding digital assets equivalent to 50% or more of their total assets as non-operating firms, a move that could have led to their removal from certain indexes used by passive and institutional investors.
Broader consultation planned
Instead of proceeding with exclusions, MSCI said it will conduct a broader consultation to assess how companies with significant non-operating assets — including cryptocurrencies — should be treated within its index framework.
The review will examine classification standards and eligibility criteria, reflecting ongoing debate over how traditional equity benchmarks should account for companies whose valuations are closely tied to digital asset holdings.
Institutional implications
MSCI’s indexes are widely used as benchmarks for exchange-traded funds and institutional portfolios, meaning changes to index eligibility rules can have material implications for capital allocation and passive investment flows.
The index provider did not provide a timeline for completing the review or implementing potential changes.
