MSCI Index Decides to keep DATs Including MicroStrategy in their Index

MSCI announced that it will not proceed with its earlier proposal to exclude digital asset treasury companies (DATCOs or DATs)—firms where digital assets primarily Bitcoin make up 50% or more of total assets—from its MSCI Global Investable Market Indexes as part of the February 2026 Index Review.

Companies currently included in MSCI indexes, such as MicroStrategy often referred to as “Strategy” in market contexts, NASDAQ: MSTR, will remain included provided they continue to meet all other standard eligibility criteria. MSCI decided to maintain the status quo for these DATCOs “for the time being,” meaning no exclusions or forced changes in index weighting, no increases to shares or inclusion factors, and deferred additions or migrations.

The decision follows a consultation where investors raised concerns that some DATCOs resemble investment funds which are typically ineligible for MSCI indexes. However, MSCI concluded that further research is needed to distinguish operating companies holding digital assets from pure investment vehicles.

MSCI plans a broader consultation on the treatment of non-operating asset-holding companies in general. This news provided significant relief to affected stocks. MicroStrategy (MSTR) shares surged approximately 5-6% in after-hours trading on January 6, recovering from prior pressure related to exclusion fears.

This outcome avoids potential forced selling by passive index-tracking funds and maintains index eligibility for Bitcoin-heavy corporate treasuries in the near term. MSCI’s flagship equity indexes, such as the MSCI ACWI (All Country World Index) and MSCI ACWI IMI (Investable Market Index), follow the Global Investable Market Indexes (GIMI) methodology.

This framework aims to provide exhaustive coverage of the global investable equity universe while emphasizing liquidity, investability, and replicability. The indexes cover large, mid, and small-cap stocks across developed and emerging markets approximately 99% of the global equity opportunity set for IMI versions.

The methodology focuses on: Broad market representation with non-overlapping size segments. Free float-adjusted market capitalization weighting. Regular maintenance to reflect market changes while minimizing turnover. Securities must pass several screens to be included in the Market Investable Equity Universe: Equity Universe Eligibility: Listed equity securities (common stocks), including most REITs.

Mutual funds, ETFs, equity derivatives, investment trusts, limited partnerships with some exceptions, e.g., certain U.S. business trusts, and convertible preferred shares.
Generally ? 0.15 reflecting foreign ownership accessibility. Adjusted for non-public ownership; minimum thresholds apply.

3-month ATVR and Frequency of Trading.
Stock price cap: Non-constituents above USD 10,000 may fail liquidity to avoid illiquidity issues. IPOs must have traded for at least 3 months before review. Minimum free float-adjusted market capitalization varies by market and size segment, e.g., higher for Developed Markets.

Global minimum size references to ensure coverage targets ~85% for Standard Indexes, ~99% for IMI. Country classification based on economic development, size/liquidity, and market accessibility. Exclusion of entities resembling investment funds typically pure holding vehicles without operating business.

February, May, August, November – Update for corporate events, liquidity, and size migrations.
Semi-Annual Index Reviews (SAIRs): May and November – Major rebalancing, refresh Equity Universe. Buffers and continuity rules to reduce unnecessary turnover.

Digital Asset Treasury Companies (DATCOs)

MSCI decided not to proceed with excluding companies where digital assets like Bitcoin comprise ?50% of total assets (DATCOs) from its indexes. Existing inclusions remain eligible if they meet standard criteria. MSCI plans broader consultation on non-operating asset-holding companies, as some DATCOs may resemble ineligible investment vehicles.