MSCI Index Review Puts Crypto Treasury Stocks at Risk of Being Kicked Out
MSCI, one of the world’s most influential equity index providers, is reviewing whether to exclude companies whose balance sheets are dominated by Bitcoin and other digital assets. If the proposal goes ahead, so-called digital asset treasury companies (DATs) could be kicked out of major benchmarks like MSCI USA and MSCI World.
MSCI’s Proposal: What Is on the Table?
In October, MSCI launched a formal consultation with investors on a rule change targeting firms whose crypto holdings exceed 50% of total assets. These companies behave more like listed funds or Bitcoin trackers than traditional operating businesses, according to feedback the index provider has received.
- Applies to “digital asset treasury companies” with heavily Bitcoin-weighted balance sheets.
- Consultation period runs until the end of the year.
- A final decision is expected around January 15, 2026, with index changes likely taking effect in February.
Who Could Be Affected?
A preliminary MSCI list reportedly contains around 38 companies, including large Bitcoin-levered names such as MicroStrategy, Riot Platforms and Marathon Digital.
These stocks have become popular with investors seeking indirect Bitcoin exposure through traditional brokerage accounts and index funds. Being dropped from benchmarks would make that route much less accessible.
Billions in Passive Flows at Risk
Analysts warn that an MSCI exclusion could trigger billions of dollars in forced selling by ETFs and mutual funds that track the affected indexes. Estimates suggest that just one prominent Bitcoin-treasury stock alone could face roughly $2.8 billion in passive outflows if removed from MSCI indices, with total potential selling rising even further if other providers follow suit.
Why Index Providers Care
MSCI’s review highlights a deeper question: Are crypto treasury firms true operating companies or just listed Bitcoin funds?
- If most of a company’s value comes from a single volatile asset on its balance sheet, index providers worry that it behaves more like a fund than an equity.
- Traditional equity benchmarks are designed to capture diversified business models with earnings, cash flow and sector fundamentals—not just asset price exposure.
- Some institutional investors have asked MSCI for clearer rules so they know exactly what kind of exposure they are getting when they use these indexes.
What It Could Mean for Crypto Markets
If MSCI ultimately decides to kick out crypto treasuries from its indexes, there are two big implications:
- Short-term pressure on stocks: Index-tracking funds would need to sell, which could hurt share prices and liquidity for affected companies.
- Clearer frameworks long-term: More transparent rules around corporate crypto holdings might actually strengthen institutional confidence over time, even if the transition is painful in the near term.
For Bitcoin itself, the impact is less direct but still important: if these companies need to reduce their exposure or face tighter financing conditions, it could influence how aggressively they continue to buy and hold BTC as a treasury asset.
This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research.
Comments
Post a Comment