MSCI Won't Exclude Bitcoin Treasury Firms Like Strategy From Global Indexes

"In a major development for Bitcoin-focused corporations and the broader digital asset ecosystem, global index provider MSCI has concluded its review of digital asset treasury companies (DATCOs) and decided against excluding them from its flagship indexes. MSCI said the current treatment of affected companies will remain unchanged for now, meaning DATCOs already included in MSCI indexes will stay included as long as they continue to meet existing eligibility requirements."

"The index provider acknowledged feedback from institutional investors expressing concern that some digital asset treasury companies resemble investment funds, which are typically excluded from its indexes. At the same time, MSCI said distinguishing between investment-oriented entities and operating companies that hold digital assets as part of their core business requires further research and market input. As a result, MSCI said it plans to launch a broader consultation on the treatment of non-operating companies,"

"The proposal, first announced by MSCI late last year, would have effectively classified DATCOs - public companies with greater than 50 % of assets in digital assets - as fund-like entities rather than operating companies, and thus ineligible for inclusion in its core indices. That framework had ignited fierce criticism from industry players and advocates."

MSCI concluded its review and decided not to exclude digital asset treasury companies from its flagship indexes, keeping current treatment unchanged. DATCOs already included will remain in MSCI indexes if they continue to meet existing eligibility requirements. MSCI acknowledged institutional investor concerns that some DATCOs resemble investment funds, which are typically excluded. Distinguishing investment-oriented entities from operating companies that hold digital assets as part of core business requires further research and market input. MSCI plans a broader consultation on non-operating companies and is deferring exclusions, additions, or size-related changes for DATCOs in the interim. The decision reverses fears that firms holding majority Bitcoin assets could be removed from major global benchmarks.

Read at Bitcoin Magazine