Strategy (MSTR) rose 6% in after-hours trading on Tuesday after MSCI opted not to remove digital asset treasury companies (DATs) from its indexes.
“Differentiating between investment companies and those that hold non-operating assets, like digital assets, as part of their core business rather than for investment needs further investigation and discussion with market participants,” stated MSCI in a release. “For example, evaluating index eligibility for various types of these entities may necessitate additional inclusion assessment criteria, including financial-statement-based or other metrics.”
“At this time, the existing index treatment for DATCOs listed in the preliminary index published by MSCI, where their digital asset holdings account for 50% or more of total assets, will remain unchanged,” MSCI added.
This announcement was closely monitored as a key factor for DATs, since their possible exclusion could have resulted in significant losses in passive capital inflow for not only Strategy but also firms seeking to replicate its model.
With the potential negative news now alleviated, investments might begin to return to several treasury companies, enhancing market sentiment. Other DATs, such as Bitmine Immersion (BMNR), Sharplink (SBET), and Twenty One Capital (XXI), also experienced slight increases in after-hours trading.
Under significant pressure earlier in the day, bitcoin also gained approximately 1% following the news, now trading at about $93,500.
Read more: JPMorgan Cautions MSCI Decision May Drive Strategy Out of Leading Equity Indices
