Key Takeaways
- MSCI has abandoned plans to remove DATCOs from its global indexes after industry pushback.
- The original proposal argued that firms heavily holding crypto resembled investment funds rather than operating companies.
- Feedback exposed gray areas, prompting MSCI to launch a broader review of non-operating assets instead.
For months, crypto-linked public companies faced a looming threat: potential removal from some of the world’s most influential equity indexes. That risk has now eased.
MSCI, the global index provider whose benchmarks guide trillions of dollars in investment capital, has formally reversed its proposal to exclude so-called Digital Asset Treasury Companies (DATCOs) from its Global Investable Market Indexes.
The decision follows an industry consultation that exposed unresolved questions around how crypto-heavy firms should be classified within traditional equity frameworks.
For now, companies such as Strategy (MSTR) and Metaplanet (MTPLF) will remain eligible for inclusion, provided they continue to meet existing index requirements.
Why MSCI Changed Course
The reversal marks a notable shift from MSCI’s position in October, when it first proposed excluding DATCOs on the grounds that they function more like investment vehicles than operating businesses.
Following weeks of feedback from asset managers, issuers, and market participants, MSCI acknowledged that the distinction is not so clear-cut.
In its updated statement, the firm said that separating pure investment companies from businesses that hold large amounts of non-operating assets—such as cryptocurrencies—as part of their core strategy requires deeper analysis and broader consultation.
“Distinguishing between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core operations rather than for investment purposes requires further research and consultation with market participants,” the official statement read.
Instead of the targeted exclusion, MSCI signaled a shift to a broader review and consultation on the treatment of non-operating companies in general, which could include updated eligibility criteria, such as financial-statement-based indicators.
This deferral represents a reprieve for DATCOs, but leaves open the possibility of future changes pending the outcome of the wider consultation.
The October Proposal That Sparked Backlash
MSCI first unveiled its proposal in mid-October, defining DATCOs as publicly traded companies whose digital asset holdings account for at least 50% of total assets and represent a primary business focus.
Under that framework, firms that hold large Bitcoin or crypto reserves could have been removed from MSCI’s Global Investable Market Indexes as early as the February 2026 index review.
The proposal identified 39 companies potentially affected, representing a combined float-adjusted market capitalization of roughly $113 billion.
Among them were high-profile Bitcoin treasury firms whose stocks have increasingly been used by investors as proxies for crypto exposure.
The consultation period ran through Dec. 31, 2025, with an initial decision timeline set for mid-January 2026—raising the prospect of forced selling by index-tracking funds and heightened volatility across crypto-related equities.
Industry Pushback and Market Implications
The proposal quickly drew sharp criticism from across the crypto and investment communities.
Strategy submitted a formal response in December, arguing that its digital asset strategy underpins its operating business rather than replacing it.
Other market participants echoed that view, warning that the exclusion could distort capital markets and discourage innovation at the intersection of traditional finance and digital assets.
Asset managers also raised concerns about unintended consequences. This includes forced index rebalancing and reduced market liquidity for companies already subject to high volatility.
MSCI’s decision to pause and broaden its review reflects those concerns.
For crypto treasury firms, the reprieve provides breathing room.
For the broader market, it signals that crypto is forcing even the most established institutions to rethink long-standing definitions.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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