Bitcoin-accumulating corporations face potential removal from major stock indexes as MSCI considers a policy change that could eliminate billions in investment demand and reshape the emerging digital asset treasury sector.
What Happened: Index Exclusion Proposal
MSCI announced Oct. plans to exclude companies holding digital assets exceeding 50% of total assets from its global benchmarks, citing resemblance to investment funds. The index provider will finalize its decision by Jan. 15 following a public consultation period.
MSCI proposed removing digital asset treasury companies from its benchmarks after receiving client inquiries about their classification. The index provider argues these firms function as investment vehicles rather than operational businesses, making them unsuitable for equity indexes that exclude traditional funds.
Michael Saylor's Strategy — formerly MicroStrategy — emerged as the most prominent target of the proposal.
The software company's shares surged 3,000% after initiating Bitcoin purchases in 2020, though the stock has declined 43% in 2025 amid cryptocurrency market weakness.
At least 200 digital asset treasury companies held combined market capitalizations around $150 billion as of Sep., according to law firm DLA Piper.
MSCI's preliminary list identifies 38 companies with $46.7 billion in issuer market capitalization at risk of exclusion, including French Bitcoin-buyer Capital B.
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Why It Matters: Market Impact
Passive asset managers typically hold up to 30% of large-cap companies' free float, according to Kaasha Saini, head of index strategy at Jefferies. Exclusion from major indexes could trigger substantial outflows for digital asset treasury firms that fund token purchases through equity sales.
Saylor and Strategy CEO Phong Le estimated in a public letter that the proposal would force liquidation of $2.8 billion in company stock and "chill" the industry. JPMorgan analysts projected total outflows reaching $8.8 billion if Strategy loses inclusion across multiple indexes including the Nasdaq 100, CRSP US Total Market Index and various Russell indexes.
TD Cowen calculated in Nov. that $2.5 billion of Strategy's market value derives from MSCI inclusion, with $5.5 billion linked to other indexes.
The company held approximately $45 billion in market value as of Dec. 19.
Matt Cole, CEO of U.S. Bitcoin-buyer Strive, said the proposals have largely been absorbed by markets. "On a longer-term basis, I think it raises the cost of capital for all bitcoin treasury companies," Cole said.
Saini told Reuters she expects most equity index providers would follow MSCI's lead on digital asset treasury eligibility. The potential exclusion affects access to the roughly $15 trillion passive-investment universe, according to Strategy's public letter.
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