MSCI is considering excluding companies with heavy Bitcoin/cryptocurrency holdings from its major indexes, primarily those where digital assets exceed 50% of total assets.
This targets “digital asset treasury” (DAT) firms that increasingly resemble investment funds rather than traditional operating companies. The primary company at risk is Strategy formerly MicroStrategy, ticker MSTR, the largest corporate Bitcoin holder.
Led by Michael Saylor, it has amassed hundreds of thousands of BTC as a core treasury strategy, making its balance sheet heavily crypto-dominant. MSCI launched a consultation in October 2025 to reclassify or exclude such firms from its Global Investable Market Indexes like MSCI World, MSCI USA.
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MSCI plans to announce its final decision by January 15, 2026, with potential implementation in February 2026.
Analysts warn of significant passive outflows, as index-tracking ETFs and funds would be forced to sell holdings:~$2.8 billion from MSCI indexes alone for Strategy. Up to $9 billion total if other providers like Nasdaq 100, Russell indexes follow suit.
Broader sector impact could affect 38–39 companies with ~$46–113 billion in combined market cap. Strategy and others via BitcoinForCorporations coalition have submitted letters arguing the rule is arbitrary, discriminatory against crypto as an asset class, and ignores operational businesses.
They claim it stifles innovation and violates index neutrality principles. Michael Saylor has downplayed the risk, stating it wouldn’t fundamentally alter Strategy’s long-term Bitcoin strategy.
The consultation is ongoing with feedback closing December 31, and no final exclusion has occurred. Strategy retained its Nasdaq 100 spot in recent rebalancing but remains under scrutiny. This reflects growing tension between traditional index methodologies and crypto-integrated corporate treasuries, especially amid Bitcoin’s volatility.
The “$9B in passive flows” figure aligns with analyst warnings of maximum potential outflows across multiple indexes if exclusions broaden.
The Nasdaq 100 Index underwent its annual reconstitution, announced on December 12, 2025, with changes effective prior to market open on Monday, December 22, 2025.
Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate Technology, and Western Digital. Removals (6 companies): Biogen Inc. (BIIB), CDW Corporation (CDW), GlobalFoundries Inc. (GFS), Lululemon Athletica Inc. (LULU), ON Semiconductor Corporation (ON), and The Trade Desk, Inc. (TTD).
Strategy retained its spot in the Nasdaq 100, despite pre-announcement speculation and analyst concerns about its Bitcoin-heavy balance sheet over 50% of assets in digital assets potentially leading to reclassification or removal.
There was no forced exclusion, unlike the ongoing risks with MSCI indexes. Retention avoids potential outflows estimated at ~$1.6–2.1 billion from index-tracking funds, Invesco QQQ ETF. Instead, it maintains steady demand from passive investors, supporting liquidity and indirect Bitcoin exposure via the index which underpins >$600 billion in AUM across products.
Minor weight adjustments occurred as part of the standard quarterly rebalancing coinciding with the annual event, but no major forced selling/buying for MSTR specifically. This rebalancing reflects Nasdaq’s rules-based approach focused on market cap, liquidity, and non-financial classification—Strategy qualified despite its treasury strategy.
The broader market impact includes shifts in sector exposure, more hardware/storage via new additions and typical trading volume spikes around the effective date from ETF rebalancing.
The outcome contrasts with MSCI’s pending decision expected January 15, 2026, where exclusion risks remain higher due to their consultation on “digital asset treasury” firms.