MSCI Delays Crypto Treasury Firm Exclusions, Major Holdings Surge

Source: Cryptonews Original Title: MSCI delays crypto treasury firm exclusions, MSTR stock surges 6% Original Link:

Market Update

The Morgan Stanley Capital International has postponed plans to exclude crypto treasury firms from its global equity indexes.

Key Developments

MSCI maintains current classifications — Companies holding large digital asset positions will remain eligible for inclusion as long as they meet standard index requirements, even when crypto holdings make up more than half of a firm’s total assets.

The move pauses a proposal floated late last year that would have reclassified many of these firms as investment vehicles rather than operating businesses. If adopted, the change could have forced their removal during the February 2026 index review.

Investor feedback shaped the decision — MSCI said feedback showed discomfort with a strict asset-based threshold. Some market participants argued that balance sheet composition alone does not capture how these companies operate or generate value.

The index provider acknowledged that more work is needed to separate true investment entities from companies that hold non-operating assets as part of a broader strategy.

Market Impact

Crypto-focused corporate holdings saw immediate gains following the announcement, with shares climbing approximately 5% in after-hours trading. This eases concerns about forced selling from passive funds tracking these indexes.

Ongoing Review

While the immediate threat has faded, MSCI made clear the issue remains under review. The firm plans to open a wider consultation on how non-operating companies should be classified across all sectors, not just crypto-focused firms.

Future criteria could rely more heavily on financial reporting indicators instead of simple ownership thresholds. Analysts have previously warned that exclusion from major indexes could trigger billions of dollars in outflows from affected companies.

The debate highlights questions about equitable treatment: companies with large exposures to traditional commodities such as oil or gold are not subject to similar classification scrutiny despite facing comparable volatility.