"Shares of Strategy ($MSTR) surged as much as 7% earlier today after global index provider MSCI concluded its long-running review of digital asset treasury companies and opted not to exclude them from its flagship equity indexes - at least for now. $MSTR was trading above $170 per share in early market trading, before paring gains as bitcoin pulled back into the low $91,000 range."
"The rally followed confirmation from MSCI that it will maintain the current treatment of digital asset treasury companies (DATCOs), including Strategy, meaning firms already included in MSCI indexes will remain eligible so long as they continue to meet existing requirements. The decision alleviated months of uncertainty that had weighed on Strategy's stock and fueled concerns over forced selling tied to index rebalancing."
MSCI will maintain current treatment of digital asset treasury companies (DATCOs), keeping firms already included in MSCI indexes eligible if they continue meeting requirements. The decision removed months of uncertainty that had pressured Strategy's stock and reduced concerns about forced selling tied to index rebalancing. Shares of Strategy (MSTR) rose as much as 7%, trading above $170 early before retreating toward $165 as bitcoin pulled back into the low $91,000 range. MSCI had reviewed whether majority-asset bitcoin holders should be classed as “investment-oriented” rather than operating companies. That proposal prompted strong pushback from Strategy and industry groups. Analysts estimated Strategy could have faced up to $2.8 billion in forced selling if exclusion proceeded.
Read at Bitcoin Magazine
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