By January 15, many anticipated MSCI to delist crypto reserve companies. However, the feared action did not occur, at least not yet, as the decision could still change in the future. So, what is the latest update from MSCI?
Breaking News on Cryptocurrencies
The organization, MSCI, prepares the most influential stock indices globally tracked by funds like ETFs. This company considered that DATSS (Digital Asset Treasury Securities), or crypto reserve companies, acted as funds trying to attract investors to their shares. Last month, they announced that a decision might be made by January 15. However, the latest announcement stated that this decision is postponed until a 2026 review.
This means crypto reserve companies will remain in the main indices, and the feared collapse from the withdrawal of billions in passive investment will not occur. This development positively impacted Strategy (MSTR), causing its share price to surge from $157 to $170 post-market trading.
This is a fantastic development as MSTR was nearing the MNAV 1 threshold, and there were concerns about potentially having to sell BTC. With the delisting cancellation, MSTR’s price is likely to rise above $189, leading to recovery in MNAV. Consequently, the company can sell more shares for substantial BTC acquisitions again.
Even though the announcement contains some concerning elements, overall, it is better than a direct delist.
“MSCI plans to start a broader consultation process regarding the treatment of non-operational companies.
Feedback gathered from the consultation confirmed institutional investors’ concerns that some DATCOs exhibit features similar to unsuitable investment funds for MSCI Indices inclusion. The feedback also highlighted that DATCOs might represent a subset of companies whose business activities focus more on investment than operations.
Further research and consultation with market participants are needed to distinguish between investment firms and other companies holding non-operational assets like digital assets as part of their core activities rather than for investment purposes.
For now, the current index treatment of DATCOs identified in MSCI’s preliminary list, where crypto assets form 50% or more of total assets, will remain unchanged.”
