The index provider MSCI Inc. is currently assessing whether companies with a high proportion of cryptocurrency holdings - particularly firms that primarily function as crypto treasuries - should remain part of their leading equity indices.
MSCI launched a consultation at the end of October, debating among other things whether companies whose digital asset holdings account for more than 50% of total assets and that essentially hold cryptocurrencies should be excluded from investable market indices, as reported by the Street,
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Push against treasury companies
Among the affected firms is MicroStrategy Incorporated (formerly Strategy Inc.), known for its large Bitcoin holdings. According to JPMorgan Chase & Co. alone, the company could face capital outflows of up to USD 2.8 billion if it were removed from MSCI indices. MSCI argues that companies whose core business is less operational and more about holding digital assets resemble investment or holding companies, and therefore do not meet the classic requirements of publicly listed operating firms.
Typical index rulebooks require substantial operational business activity; if a company’s value is primarily derived from crypto holdings, it may no longer qualify going forward. The consultation runs until 31 December 2025, with a decision and announcement scheduled for 15 January 2026, and potential changes taking effect in February.
Consequences for companies and markets
Exclusion from a major MSCI index would have immediate effects: index-tracking funds would be forced to sell the corresponding shares, creating significant selling and liquidity pressure. For MicroStrategy, potential capital outflows of up to USD 8.8 billion are being discussed if other index providers follow suit.
For companies with large crypto holdings, this represents a strategic turning point: either they adjust their balance sheet structure and reduce the share of digital assets, or they risk losing key institutional investors and passive inflows. At the same time, this development marks a shift - crypto strategies are increasingly integrated into regulated financial markets and being assessed more rigorously for compliance than before.
