Shares of Michael Saylor’s Strategy rose by 5% after MSCI announced it would maintain the inclusion of digital asset treasury companies (DATCOs) in its global indexes. This decision followed investor feedback and highlights the ongoing importance of digital assets in institutional investment strategies.
MSCI noted that DATCOs are defined as firms where digital assets constitute 50% or more of total assets. The organization indicated that these companies will undergo broader consultations to differentiate between entities focused on investment and those that incorporate digital assets into their core operations. This review aims to ensure that the MSCI Indexes continue to reflect the performance of operational firms while excluding primarily investment-oriented entities.
The continuation of DATCOs in the indexes is expected to bolster demand and liquidity for passive index funds, averting potential losses of billions for companies like Strategy that could have faced significant capital outflows otherwise. Despite a 4.1% drop during standard trading, Strategy’s stock price rebounded in after-hours trading following the MSCI announcement.