Strategy surges 6% on MSCI decision not to exclude digital asset treasury firms from indexes

Strategy (MSTR) is ahead 6% in after-hours trading on Tuesday after MSCI decided not to exclude digital asset treasury companies (DATs) from its indexes.

“Distinguishing between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core operations rather than for investment purposes requires further research and consultation with market participants,” said MSCI in a statement. “For instance, assessing index eligibility across a range of these types of entities may require additional inclusion assessment criteria, such as financial-statement-based or other indicators.”

“For the time being, the current index treatment of DATCOs identified in the preliminary list published by MSCI of companies whose digital asset holdings represent 50% or more of their total assets will remain unchanged,” MSCI continued.

The announcement was one of the most-watched catalysts for DATs, as their potential exclusion would mean not just Strategy, but those firms aiming to mimic that company, could lose billions in passive capital inflow.

With the possible negative news now lifted, capital might start to flow back into some of the treasury companies, potentially boosting market sentiment. Other DATs, such as Bitmine Immersion (BMNR), Sharplink (SBET), and Twenty One Capital (XXI), also saw modest bumps in after-hours trading.

Under pressure for most of the day, bitcoin also added about 1% on the news, now trading around $93,500.

Read more: JPMorgan Warns MSCI Decision Could Force Strategy Out of Top Equity Indices