MSCI is considering removing encryption asset companies from its stock indices.

Source: CryptoValleyJournal Original Title: MSCI considers excluding crypto-treasury companies from equity indices Original Link: https://cryptovalleyjournal.com/hot-topics/news/msci-considers-excluding-crypto-treasury-companies-from-equity-indices/

New Initiatives from Index Providers

Index provider MSCI Inc. is currently assessing whether companies that hold significant amounts of cryptocurrency—particularly those whose primary function is as a crypto asset repository—should continue to be included in its main stock indices.

MSCI launched a consultation at the end of October to discuss whether companies that hold more than 50% of their total assets in digital assets and primarily hold cryptocurrencies should be excluded from investable market indices.

Affected Companies

Affected companies include MicroStrategy Inc., which is known for its large Bitcoin holdings. According to analysis from JPMorgan, if the company is removed from the MSCI index, it could face capital outflows of up to $2.8 billion.

The reason given by MSCI is that companies whose core business is not operation but holding digital assets are more like investment or holding companies, and therefore do not meet the classic requirements for listed operating enterprises.

The Impact of Index Rules

Typical index rules require companies to have substantive operational business activities. If a company's value primarily comes from cryptocurrency holdings, it may no longer meet future requirements.

The consultation will last until December 31, 2025, with resolutions and announcements planned to be released on January 15, 2026, and potential changes will take effect in February.

Market Consequences

Being excluded from the main MSCI index will have an immediate impact: funds tracking the index will be forced to sell the corresponding stocks, resulting in significant selling pressure and liquidity pressure. For MicroStrategy, if other index providers take similar actions, potential capital outflows could reach as high as $8.8 billion.

For companies holding large amounts of cryptocurrency, this represents a strategic turning point: either adjust the balance sheet structure and reduce the proportion of digital assets or risk losing key institutional investors and passive investment inflows. At the same time, this development marks a shift — cryptocurrency strategies are increasingly being integrated into regulated financial markets and are facing stricter compliance assessments than before.