According to Reuters, shares of Michael Saylor’s MicroStrategy surged 6% in premarket trading on Wednesday, January 7th. This jump came after index provider MSCI dropped its fall proposal to exclude digital asset treasury companies (DATCOs) from its global benchmarks. The proposal had argued these firms, which hold crypto like bitcoin and ether as their main treasury assets, resembled investment funds. For now, MSCI will maintain its current treatment for DATCOs where digital assets represent 50% or more of total assets. The decision offers a temporary reprieve for MicroStrategy, whose stock closed 2025 down a staggering 47.5% amid a bitcoin slump.
The Great Index Provider Punt
Here’s the thing: this isn’t a resolution. It’s a postponement. MSCI, as noted by JonesTrading’s Mike O’Rourke, intends to open a broader consultation on “non-operating companies” generally. Translation? They’re kicking the can down the road. The core debate is still utterly unresolved: are these companies, like MicroStrategy, fundamentally tech firms with an innovative treasury strategy, or are they just glorified, publicly-traded bitcoin ETFs? The accounting treatment is a mess, and the volatility is insane. MSCI basically said, “This is too hot to handle right now, let’s revisit it later in the year.”
A Lifeline for the Crypto Proxy Play
This is a huge deal for investors using these stocks as a proxy. Think about it. Before spot bitcoin ETFs, buying MSTR was one of the few ways for traditional equity investors to get leveraged exposure to bitcoin’s price without touching a crypto exchange. That model spawned a whole frenzy in 2025. If MSCI had gone through with the boot, it would have forced massive selling by funds that track its indexes. Other major index providers like FTSE or S&P could have easily followed suit. Now, that immediate pressure valve is released. But let’s be clear: the sword is still dangling. These shares will stay volatile as heck, dancing to bitcoin’s tune while waiting for the other shoe to drop from MSCI.
So What’s Next for DATCOs?
They bought time, but for what? The argument from these firms is they’re real operating companies. MicroStrategy started as a software business, after all. But let’s be honest, when 50%+ of your assets are in crypto, that’s the tail wagging the dog. The reprieve gives them a chance to maybe, just maybe, build out those underlying business units to add legitimacy. Or, it just gives them more runway to be a pure volatility play. I think the broader consultation is the real story. If MSCI creates a new rule for “non-operating companies,” it could affect way more than just crypto firms. That’s a can of worms they might regret opening. For now, the crypto treasury experiment lives to see another day, but its place in the mainstream financial world is still on probation.
