Shares of Strategy (MSTR) increased by nearly 6% in after-hours trading on Tuesday following MSCI’s announcement that it would not proceed—at least for now—with plans to exclude digital asset treasury firms from its indexes.
This decision alleviates immediate pressure on firms like Strategy, which possess significant bitcoin on their balance sheets yet do not directly engage in the blockchain sector. A formal exclusion from MSCI indexes could have prompted institutional investors to divest, diminishing demand for the stock.
Read more: Strategy surges 6% on MSCI decision not to exclude DATs from indexes
Nevertheless, analysts caution that this development may not be the final chapter.
“Consistent with our previous analyses, we are surprised by this clearly positive turn of events,” stated Lance Vitanza of TD Cowen. “What remains uncertain is whether this indicates a victory for the defense or merely a temporary reprieve.” Vitanza rates MSTR stock as a buy with a price target of $500, according to FactSet data.
Mark Palmer of Benchmark, who holds the most bullish stance on the stock with a buy rating and a $705 price target, viewed the announcement as favorable for the stock. “MSCI’s decision represents a welcome relief for Strategy, indicating that the company’s case against the exclusion of digital asset treasury firms from the indexes may have been effective.”
Read more: Michael Saylor’s MSTR Responds to Potential MSCI Exclusion
However, Palmer echoed a cautious outlook regarding the long-term implications. “MSCI’s decision to evaluate the exclusion of non-operating companies from its indexes suggests that this situation is not yet resolved.”
The outcome is crucial for crypto treasury firms more broadly, as it affects not only Strategy but also any company that considers digital assets a key element of its treasury practices. If MSCI alters its regulations in the future to exclude non-operating firms more widely, Strategy could encounter renewed scrutiny—and potentially risk losing its placement in major market indexes.
For the moment, however, it appears to be cautious optimism for companies like Strategy.
