MSCI considers excluding companies with over 50% in digital assets like Bitcoin from equity indexes.
- MSCI proposes excluding Bitcoin-treasury firms from equity indexes.
- Potentially affects billions in passive fund outflows.
- Industry calls for operations-based classification instead.
MSCI proposes exclusion of digital asset treasury companies with over 50% crypto holdings from equity indexes, facing opposition from Strategy Inc., a leading Bitcoin treasury, as of December 2025.
This decision impacts how digital asset companies are classified, potentially provoking volatility in related stock markets due to anticipated passive outflows and shifting investment strategies.
MSCI has proposed excluding firms holding over 50% in digital assets like Bitcoin from equity indexes, sparking industry debate over the policy.
The proposal could influence billions in market movements, with industry leaders advocating for index classifications based on company operations over asset holdings.
MSCI Targets Digital Asset Holdings for Exclusion
MSCI is consulting on a proposal to exclude entities, termed Digital Asset Treasury Companies (DATs), holding substantial digital assets from its indices. The consultation is set to conclude on December 31, 2025.
Strategy Inc., a major Bitcoin-treasury firm, opposes the policy, arguing the threshold is misguided. They stress such exclusions will harm investors and misrepresent industry operations.
“MSCI has long defined companies by what they do, not by what they hold. This proposal abandons that principle for a single asset class. Our member companies operate real businesses with employees, customers, and revenue. A shareholder-approved treasury decision shouldn’t override that reality.” – George Mekhail, Managing Director, Bitcoin For Corporations
Billions in Potential Stock Outflows Loom for Strategy Inc.
Excluding firms from MSCI indexes may lead to $2.8 billion in stock outflows for Strategy Inc. alone, and greater industry-wide outflows, due to passive funds selling off affected stocks.
Industry experts, including Bitcoin For Corporations, argue the proposal’s bias against digital assets contradicts MSCI’s operating principles and could artificially inflate market volatility unrelated to company performance.
Historical Precedent Raises Concerns of Asset-Based Bias
Previously, companies have not faced exclusion based on treasury composition. The decision mirrors the analogy of penalizing Chevron for prioritizing oil, highlighting concerns about asset-based biases.
Analysts predict the exclusion could result in capital misallocation, increased funding costs for DATs, and a deterrence in adopting BTC treasury strategies, based on industry and historical financial data.
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