MSCI keeps digital asset treasury companies in its indexes for now

MSCI said it will continue to include digital asset treasury companies in its global indexes, a decision the firm attributed to investor feedback and the need for further study. Shares in Michael Saylor’s Strategy rose 5% after MSCI decided not to exclude those companies, the firm said in a note published Tuesday.

MSCI said digital asset treasury companies (DATCOs) will be subject to broader consultations aimed at distinguishing between investment companies and companies that hold digital assets as part of their core operations. "This broader review is intended to ensure consistency and continued alignment with the overall objectives of the MSCI Indexes, which seek to measure the performance of operating companies and exclude entities whose primary activities are investment-oriented in nature," the note said.

The firm identifies DATCOs as companies in which digital assets make up 50% or more of total assets. MSCI said the continued inclusion means DATs remain eligible for passive index funds, which it said sustains demand and liquidity and broadens institutional ownership of digital assets. The review and consultations will continue, and no rule change has been announced.

Key Topics

Crypto, Msci, Datcos, Digital Assets, Passive Index Funds, Michael Saylor