Strategy rises as MSCI shelves plans to exclude crypto treasury firms from indexes

Core Viewpoint - Shares of Strategy, led by billionaire Michael Saylor, rose in premarket trading after MSCI decided not to exclude crypto treasury firms from its indexes, alleviating some near-term technical risks for public equities that serve as proxies for bitcoin and crypto exposure [1][3]. Group 1: Market Reaction - The decision by MSCI led to a surge in shares of Strategy, which was previously known as MicroStrategy, as it was the first among digital asset treasury companies (DATCOs) to buy bitcoin in 2020, initiating a trend in the market [4]. - Shares of Strategy increased by 4.3% before the market opened, although gains were later trimmed due to a decline in bitcoin prices affecting crypto-related stocks [5]. Group 2: Industry Context - DATCOs gained popularity in 2025 as many firms began holding cryptocurrencies like bitcoin and ether as their main treasury assets, providing investors with indirect exposure to these digital assets [1]. - Despite their popularity, the tokens are subject to significant price volatility, and there is ongoing debate among analysts regarding the appropriate accounting treatment for these companies, whether as holding vehicles or based on their underlying business operations [2]. Group 3: MSCI's Position - MSCI had previously proposed removing DATCOs from its global benchmarks, arguing that they resemble investment funds, which are excluded from its indexes, raising concerns that other index providers might follow suit [3]. - Many firms argue that they are operating companies developing new products and that MSCI's proposals unfairly target the crypto sector. MSCI plans to conduct a broader consultation on the treatment of non-operating companies, suggesting that exclusion may be postponed until later in the year [4].