MSCI Considers Removing Crypto-Heavy Companies from Indexes

According to Odaily, MSCI is contemplating the removal of companies with significant digital asset holdings, such as Strategy (MSTR.O), from its major stock indexes. Analysts suggest this move could potentially reduce stock demand for these companies by up to $9 billion and diminish the sector's overall appeal. In response to client inquiries, MSCI proposed in October to exclude companies with digital asset holdings exceeding 50% of their total assets from its global benchmark indexes. MSCI argues that these companies resemble investment funds, which are not included in its index system. However, many affected companies counter that they are actively engaged in operations and developing innovative products, viewing MSCI's proposal as unfairly discriminatory against the crypto industry. Additionally, numerous companies have been inspired to incorporate crypto tokens into their balance sheets, anticipating future appreciation. However, questions about the sustainability of these business models are growing. MSCI is currently conducting a public consultation and plans to announce its final decision on January 15. Analysts note that if MSCI excludes digital asset treasury (DAT) companies from its indexes, other index providers may follow suit.