In after-hours trading on Tuesday, Strategy (MSTR) experienced a notable increase of 6% following a significant announcement from MSCI regarding digital asset treasury companies (DATs). MSCI has opted not to exclude these companies from its indexes, a decision that has been closely watched by investors and industry participants.
MSCI clarified that differentiating between investment companies and those that hold non-operating assets, such as digital assets incorporated into their primary operations, necessitates further research and consultations. The firm noted that determining index eligibility for this category of entities could involve developing additional criteria, potentially including financial statements or other relevant indicators.
Currently, the treatment of digital asset treasury companies listed in MSCI’s preliminary index, which identifies those with digital asset holdings making up 50% or more of total assets, will remain unchanged. This is a crucial point, as the potential exclusion of these companies could have resulted in significant financial repercussions, leading to billions in lost passive capital inflows not only for Strategy but also for firms seeking to emulate its model.
With the uncertainty regarding the potential exclusion now lifted, investors may begin to redirect capital back towards treasury companies, which could enhance overall market sentiment. This shift was evidenced by other DATs such as Bitmine Immersion (BMNR), Sharplink (SBET), and Twenty One Capital (XXI), all of which saw modest gains during after-hours trading.
Moreover, the cryptocurrency market reacted positively, with Bitcoin registering an approximate 1% increase, bringing its trading price to around $93,500. This uptick reflects a renewed optimism among traders and investors alike in light of MSCI’s decision, offering potential support for the broader digital asset landscape.
