DAT panic ends! MSCI suspends removal of crypto treasury stocks from the index, Strategy surges 7% after hours

MSCI Suspends Removal of Holdings, Strategy Rises After Hours and Avoids $2.8 Billion Passive Sell-Off
(Background: MicroStrategy Strategy invests another $100 million to acquire 1,229 Bitcoins, bringing total holdings to over 672,000 BTC)
(Additional context: Michael Saylor reiterates Bitcoin targets of $1 million and $10 million: waiting for Strategy to hold 5% or 7% of total BTC supply)

On the night of the 6th, U.S. index provider MSCI announced that in the February quarter review, it will temporarily suspend the implementation of the plan to classify companies with digital assets exceeding 50% of their assets as investment funds, directly alleviating market fears of the delisting of Strategy (formerly MicroStrategy) and 38 other digital asset treasury companies. Following the news, Strategy’s stock price surged immediately after hours by 5% to 7%, and the potential passive sell-off of nearly $2.8 billion was temporarily halted.

The treatment of DATCO indices, which list digital asset holdings accounting for 50% or more of total assets in MSCI’s preliminary list, will remain unchanged.

The Suspended “50%” Threshold

MSCI’s original proposal classified companies with digital assets exceeding half of their total assets as passive instruments similar to ETFs, causing them to lose their seat in benchmark indices like MSCI World and MSCI USA. Critics argued that the threshold depends on coin price volatility; if Bitcoin (BTC) rises, companies could passively cross the line, making the standard overly arbitrary and amplifying market distortions. MSCI ultimately decided to conduct broader consultations, citing significant differences in accounting standards across countries and difficulty in establishing a unified criterion.

For stocks like Strategy, entering or exiting indices not only affects reputation but also directly impacts global passive fund flows. Data shows that if the 50% rule is enforced, only Strategy could be forced to sell about $2.8 billion worth of stocks tracked by MSCI ETFs, with overall sector capital outflows reaching up to $15 billion. After the event was announced, Strategy’s stock quickly rebounded from around $158, illustrating that sometimes index membership can dominate price movements more than short-term fundamentals.

The Regulatory Reality in 2026

The debate centers on the identity issue that legal and economic scholars are trying to clarify: when a company accumulates Bitcoin as a core strategy, does it still qualify as an operating company? Strategy Chairman Michael Saylor has repeatedly emphasized that Bitcoin reserves require active management and risk control, which is fundamentally different from passive ETF holdings. However, MSCI stated that in the future, a new classification of “non-operating companies” will be established, meaning that removing the 50% threshold does not end the review process. For the crypto industry, traditional gatekeepers are temporarily loosening their grip, but an unmarked exam paper remains.

The event also reflects the regulatory atmosphere created by the Trump administration last year: while political rhetoric has been crypto-friendly, the financial infrastructure remains governed by existing rules. Strategy experienced a 25% correction in Q4 2025, with approximately $17.4 billion in unrealized losses on its books, putting pressure on cash flow and risk tolerance. Avoiding delisting this time bought the company some observation time, but the next review is imminent. To stay long-term in benchmark indices, they must prove they are not just high-leverage holders but companies that meet traditional standards in accounting, operations, and governance.

MSCI’s “delay tactic” has temporarily paused the culling by Wall Street’s passive investment machinery, revealing the core conflict between Bitcoin treasury models and index construction debates. When asset and liability profiles change due to price fluctuations, should traditional valuation frameworks give way to new asset classes? The answer remains in development.