MSCI Delays Exclusion of Digital Asset Companies, Strategy Shares Surge
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Positive Market Reaction: Morgan Stanley Capital International's decision to delay the exclusion of digital asset companies led to a roughly 5% surge in Strategy's shares during after-hours trading, despite a 4.1% drop in regular trading, indicating market approval of the move.
- Asset Holdings: Strategy currently holds 673,783 BTC, with digital assets accounting for over 50% of its total assets, highlighting the stock's sensitivity to changes in index eligibility and institutional capital flows.
- Liquidity Support: MSCI's decision means that Strategy and other digital asset companies remain eligible for inclusion in index-tracking funds, which helps support liquidity and sustain demand from institutional investors, avoiding potential billions in passive outflows.
- Long-term Uncertainty: While the current decision provides temporary relief for digital asset companies, ongoing discussions about their long-term classification continue, especially in light of increased volatility in the crypto markets, raising concerns about future risks and sustainability.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
