Strategy jumps 6% following MSCI’s decision not to exclude digital asset treasury companies from indices
Strategy (MSTR) is ahead 6% in after-hours trading Tuesday after MSCI decided not to exclude digital asset treasury (DAT) companies from its indexes.
“Distinguishing between investment companies and other companies that hold non-operational assets, such as digital assets, as part of their core businesses rather than for investment purposes requires further research and consultation with market participants,” MSCI said in a statement. “For example, assessing index eligibility for a range of these entity types may require additional inclusion evaluation criteria, such as financial statement-based or other indicators.”
“At this time, the current index treatment of DATCOs identified in MSCI’s published preliminary list of companies whose digital asset holdings represent 50% or more of their total assets will remain unchanged,” MSCI continued.
This announcement was one of the most closely watched catalysts for DATs, as their potential exclusion would mean not only that the strategy, but also that companies seeking to emulate this business, could lose billions in passive capital inflows.
With potential negative news now cleared, capital may begin to flow into some treasury companies, which could strengthen market sentiment. Other DATs, such as Bitmine Immersion (BMNR), Sharplink (SBET), and Twenty One Capital (XXI), also saw slight increases in after-hours trading.
Under pressure for most of the day, bitcoin also added about 1% to the news, now trading around $93,500.
Read more: JPMorgan warns MSCI move could force strategy out of major stock indexes
