MSCI Drops Plan To Exclude Crypto Treasury Companies After Triggering Oct. 10 Crash

Core Viewpoint - MSCI has decided not to exclude Digital Asset Treasury Companies (DATCOs) from its Global Investable Market Indexes, easing the risk for crypto-linked public companies [2][10]. Group 1: Decision and Implications - MSCI formally reversed its proposal to exclude DATCOs after industry consultation revealed unresolved classification issues regarding crypto-heavy firms within traditional equity frameworks [2][4]. - Companies like Strategy (MSTR) and Metaplanet (MTPLF) will remain eligible for index inclusion as long as they meet existing requirements [3]. Group 2: Reason for Change - The reversal marks a significant shift from MSCI's initial position in October, which proposed exclusion based on the view that DATCOs function more like investment vehicles than operating businesses [4][10]. - Feedback from asset managers and market participants highlighted the complexity of distinguishing between investment companies and those holding non-operating assets like cryptocurrencies [5][6]. Group 3: Future Considerations - MSCI indicated a shift towards a broader review of the treatment of non-operating companies, which may lead to updated eligibility criteria based on financial-statement indicators [7]. - While this decision provides temporary relief for DATCOs, it leaves the door open for potential future changes depending on the outcome of the wider consultation [8].