Strategy (MSTR) is ahead 6% in after-hours trading on Tuesday after MSCI decided not to exclude digital asset treasury (DAT) companies from its indices.
“Distinguishing between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core operations rather than for investment purposes requires further research and consultation with market participants,” MSCI said in a statement. “For example, evaluating index eligibility across a variety of these types of entities may require additional inclusion evaluation criteria, such as indicators based on financial statements or other indicators.”
“For the time being, the current index treatment of DATCOs identified in MSCI’s published preliminary list of companies whose digital asset holdings represent 50% or more of their total assets will remain unchanged,” MSCI continued.
The announcement was one of the most watched catalysts for DAT, as its possible exclusion would mean that not only Strategy, but also those companies that aim to imitate that company, could lose billions in passive capital inflows.
With potential negative news out of the way, capital could begin to return to some of the Treasury companies, which could boost market confidence. Other DATs, such as Bitmine Immersion (BMNR), Sharplink (SBET), and Twenty One Capital (XXI), also saw modest increases in after-hours trading.
Under pressure for most of the day, bitcoin also added around 1% following the news, now trading around $93,500.
Read more: JPMorgan warns that MSCI decision could force strategy to exit major stock indices
