MSTR Stock Rises 6% as MSCI Keeps Digital Asset Firms in Indexes
Shares of Michael Saylor’s Strategy (MSTR) increased by 6% during after-hours trading on Tuesday. This surge followed the announcement that MSCI will retain digital asset treasury companies (DATs) within its indexes. This decision is significant for the digital asset market and organizations affected by index placements.
MSCI’s Decision on Digital Asset Firms
MSCI stated that the differentiation between investment companies and those with non-operating digital asset holdings requires further investigation. The company emphasized the need for consultations with market participants. Additional criteria will be necessary to assess the index eligibility of various entities.
Current Index Treatment Remains Unchanged
According to MSCI, the current index treatment of DATs listed in their preliminary assessment will remain unchanged. These firms have digital asset holdings that constitute 50% or more of their total assets. The potential exclusion of these companies could have resulted in massive losses in passive capital inflow.
Market Impact and Reactions
This announcement was crucial for firms in the digital asset sector, as the exclusion could have spelled disaster for Strategy and similar companies. With this uncertainty alleviated, capital is expected to flow back into treasury firms, potentially uplifting market sentiment.
- Other DATs experiencing gains during after-hours include:
- Bitmine Immersion (BMNR)
- Sharplink (SBET)
- Twenty One Capital (XXI)
- Bitcoin experienced a slight increase of approximately 1%, trading around $93,500.
The developments surrounding MSCI’s decision highlight the importance of index classifications for digital asset firms. The outcome not only stabilizes Strategy but also fosters optimism within the broader market.
