MSCI delisting could trigger crypto sell-off worth billions

Core Viewpoint - MSCI's proposal to exclude crypto treasury companies from its indices could lead to significant forced sales of digital assets, potentially amounting to $10 billion to $15 billion [1][4]. Group 1: MSCI Proposal and Impact - MSCI is considering a delisting proposal that would exclude public companies with over 50% of their assets in digital assets from traditional stock indices like the MSCI USA Index [1][2]. - If implemented, this proposal could force crypto treasury companies to sell billions of dollars worth of crypto assets, with estimates suggesting a range of $10 billion to $15 billion in forced sales [4]. Group 2: Affected Companies - A total of 39 companies have been identified that could be impacted by this proposal, including 18 index constituents and 21 non-constituents, with a combined float-adjusted market cap of $113 billion [4]. - MicroStrategy, led by Michael Saylor, represents 74.5% of the total float-adjusted market cap of these companies [4]. Group 3: Criticism of MSCI's Approach - BitcoinForCorporations criticized MSCI's approach as "discriminatory," noting that similar exclusion rules do not apply to companies holding gold or bonds [5]. - The group advocates for enhanced disclosure requirements instead of exclusion for companies involved in crypto treasuries [5].