Crypto Treasury Firms Gain Momentum as MSCI Delays Exclusion from Key Indexes

Shares of Strategy (MSTR), a prominent digital asset treasury company, rose sharply following MSCI’s decision to halt plans to exclude crypto treasury firms from its indexes. This move removed a significant short-term risk for companies acting as proxies for bitcoin and other cryptocurrencies.

MSCIs initial proposal aimed to eliminate digital asset treasury companies (DATCOs) from global benchmarks, citing their similarity to investment funds, which are typically excluded. The proposal stirred concern that other index providers might adopt similar stances, potentially impacting the volatility-prone crypto treasury stocks.

Rise of Digital Asset Treasury Companies

The emergence of DATCOs gained momentum as many firms started holding major cryptocurrencies like bitcoin and ether as primary treasury assets. This shift began around early 2025, reflecting a growing trend where companies’ balance sheets incorporate crypto holdings directly. Investors viewed these companies as proxies for gaining crypto exposure without buying tokens outright.

Despite growing popularity, shares of such firms remain highly volatile due to sharp price swings inherent in cryptocurrencies. Analysts continue to debate the appropriate accounting treatment for these companies, questioning whether they should be considered traditional operating businesses or primarily holding entities.

Market and Analyst Perspectives

Owen Lau, an analyst at Clear Street, noted that MSCI’s postponement "removes a material near-term technical risk" for crypto-linked public equities. He expects MSCI will likely grandfather existing DATCOs currently included in indexes, providing some regulatory relief to these companies.

Mike O’Rourke, chief market strategist at JonesTrading, indicated the possibility of a broader industry consultation ahead. He suggested that exclusion plans are delayed and may be reviewed comprehensively later in the year, reflecting ongoing debate about how non-operating companies should be treated in indexes.

Impact on Strategy and Broader Industry

Strategy, formerly known as MicroStrategy, has been a pioneer in the crypto treasury space since it began accumulating bitcoin in 2020. It set the precedent for other firms to adopt similar treasury strategies. Following MSCI’s decision, Strategy’s shares surged as investors reacted positively to the lowered risk of exclusion from key equity indexes.

However, the market remains sensitive to bitcoin’s price fluctuations, which continue to affect crypto-related equities. Most recently, Strategy shares trimmed gains as bitcoin prices declined during morning trading sessions.

Outlook and Industry Implications

While MSCI’s current stance provides temporary relief, the long-term treatment of DATCOs in indexes remains unsettled. The decision highlights broader challenges for index providers grappling with how to incorporate emerging business models linked to digital assets.

Industry participants maintain that DATCOs operate as legitimate businesses actively developing new products, contrasting with traditional investment funds. This contention underscores ongoing tensions between established financial frameworks and innovative crypto holdings.

Key Points Regarding MSCI’s Decision on DATCOs:

1. MSCI proposed excluding DATCOs due to their fund-like nature.
2. Pushback from the industry led to postponing these plans.
3. Analysts expect existing DATCOs to be grandfathered into indexes.
4. A broader consultation on non-operating companies is anticipated.
5. The move reduces near-term index eligibility uncertainty.

As the debate continues, MSCI’s approach will remain a focal point for crypto treasury companies and investors. The outcome could influence broader index methodologies and investor access to crypto proxy stocks in the coming months.