Hua Er Jie Jian Wen·2026-01-07 03:44Core Viewpoint - MSCI has decided to maintain its current index treatment for "crypto treasury companies," allowing firms like MicroStrategy, which holds Bitcoin as a core asset, to remain included in the index [1][3] Group 1: MSCI's Decision - MSCI will not remove companies with over 50% of their total assets in cryptocurrency from its indices, indicating a temporary reprieve for crypto treasury companies [1] - The decision reflects MSCI's view that crypto treasury companies possess characteristics of investment funds rather than operational companies [1][4] - MSCI plans to initiate broader consultations to explore how to treat non-operational companies in the future [1][4] Group 2: Market Reactions - Following the announcement, MicroStrategy's stock price rose over 6% in after-hours trading, recovering from a nearly 60% decline over the past year [1] - Analysts had previously warned that if MSCI proceeded with a removal plan, it could lead to up to $2.8 billion in outflows from MicroStrategy, with potential further impacts if other index providers followed suit [3] Group 3: Industry Context - MicroStrategy, initially a software company, transitioned to a Bitcoin treasury strategy in 2020, which was initially viewed skeptically but later gained popularity among investors seeking Bitcoin exposure [6] - The stock price of MicroStrategy surged over 3500% at its peak post-transition, outperforming major stock indices [6] - Despite the recent reprieve from MSCI, the debate regarding the positioning of crypto treasury companies within traditional financial indices continues [7]