Global index provider MSCI has sent shockwaves through the digital asset sector by warning that companies like Strategy and 38 other crypto firms may be removed from its major equity benchmarks. The move comes amid growing scrutiny of digital asset treasuries, particularly firms whose balance sheets are dominated by Bitcoin or Ethereum holdings.
Why is MSCI making this threat?
MSCI is consulting on new rules that would exclude companies with digital asset holdings exceeding 50% of total assets from its indices. The concern is that such firms behave less like traditional operating companies and more like crypto investment vehicles. This would expose index investors to volatility they may not have signed up for.
Analysts note that MSCI’s review reflects broader institutional unease about the blurred line between corporate treasuries and speculative crypto reserves.
Digital asset treasuries under scrutiny
The heart of MSCI’s concern lies in digital asset treasuries. Firms like Strategy have transformed themselves into leveraged Bitcoin holders, with billions of dollars in crypto sitting on their balance sheets. While this strategy appeals to crypto believers, it raises red flags for index providers tasked with ensuring diversified, representative benchmarks. MSCI fears that excessive exposure to crypto assets could distort index performance and undermine investor confidence.
How will markets be impacted?
If MSCI follows through, the consequences could be severe. JPMorgan estimates that Strategy alone could face $2.8 billion in forced selling if removed from MSCI indices. They’ve estimated total outflows across affected firms to reach $11.6 billion. Moreover, passive funds tracking MSCI benchmarks would be compelled to liquidate holdings, which could then trigger bigger outflows from these stocks. The decision is expected by January 15, 2026, giving markets only a few weeks to prepare.