Strategy (MSTR) shares rose nearly 6% in post-market trading Tuesday after MSCI said it would not move forward, for now, with plans to exclude digital asset treasury companies from its indices.
The move relieves immediate pressure on companies like Strategy, which hold large amounts of bitcoin. on their balance sheets but do not operate directly in the blockchain sector. A formal exclusion from MSCI indices could have pushed institutional investors to divest, reducing demand for shares.
Read more: Strategy rises 6% following MSCI’s decision not to exclude DATs from indices
Still, analysts say this development may not be the end of the story.
“Consistent with what we have written previously, we are surprised by this clearly positive development,” wrote TD Cowen’s Lance Vitanza. “What remains to be seen is whether this represents a victory for the defense or simply a stay of execution.” Vitanza rates MSTR stock a Buy with a $500 price target, according to FactSet data.
Benchmark’s Mark Palmer, who is the stock’s top bull with a buy rating and a $705 price target, saw the news as positive for the stock. “MSCI’s decision represents a welcome respite for Strategy, and it appears that the company’s arguments against the exclusion of digital asset treasury companies from the indices may have had the desired impact.”
Read more: Michael Saylor’s MSTR responds to possible exclusion from MSCI
However, Palmer also echoed a cautious tone about the long-term impact. “MSCI’s decision to consider excluding non-operating companies from its indices means this episode is not over yet.”
The result is significant for cryptocurrency treasury firms in general, as it has implications not only for strategy but also for any firm that treats digital assets as a core component of its treasury operations. If MSCI revises its rules in the future to more broadly exclude non-trading companies, Strategy could face new scrutiny and potentially lose its place in key market indices.
However, it seems that, at least for now, there is cautious optimism for companies like Strategy.
