MSCI DATCO Index Decision: Retains MicroStrategy in the Index

MSCI DATCO Index Decision: MicroStrategy Saved from Forced $9B SellOff

The crypto world just caught a massive break. In a move that’s being hailed as a major win for corporate Bitcoiners, the recent MSCI DATCO index decision effectively shelves the proposal to remove Bitcoin-centric firms from its premier global benchmarks. This Tuesday, January 6, 2026, MSCI confirmed they aren't going through with the proposal to scrub Digital Asset Treasury Companies (DATCOs) from their indexes during the February review. This isn't just about red tape; it literally saved Michael Saylor's MicroStrategy (MSTR) and nearly 40 other firms from a "guaranteed" lose. Analysts estimate that had MSCI pulled the trigger, we would have seen anywhere from $10 billion to $15 billion in forced selling as passive index funds were legally required to dump their shares.

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The news immediately sent shockwaves through the market. Shares of MicroStrategy (MSTR) surged over 6% in after-hours trading, reaching approximately $167.70. This recovery comes as Bitcoin continues its strong 2026 run, currently trading at $92,620 with a total market cap of $3.30 trillion.

The "DATCO" Handcuffs: Inclusion with Conditions

While the MSCI DATCO index decision is a win for Michael Saylor and his "Bitcoin-as-a-Treasury" thesis, it comes with a catch. MSCI is keeping these firms in the index but is essentially "freezing" their growth within the benchmark. The firm stated that it will not implement increases to the Number of Shares (NOS) or inclusion factors for these securities. Furthermore, any new additions or size-segment migrations for DATCOs are being deferred.

In simple terms: MicroStrategy stays in the index, but if it issues new shares to buy more Bitcoin, those new shares won't increase its weight in the the global firm . This move is designed to prevent "reflexivity loops" where a company uses its index inclusion to aggressively expand its balance sheet with non-operating assets.

Why MSCI Bended to Market Reality

The decision follows a heated consultation period where institutional investors expressed a mix of fear and necessity. On one hand, critics argue that firms like MicroStrategy, where digital assets represent over 50% of total assets, look more like investment funds than operating companies. Since investment funds are ineligible for the global firm equity indexes, the exclusion seemed logical.

However, the "Michael Saylor effect" and the recent U.S. Strategic Bitcoin Reserve (Executive Order 14233) have shifted the narrative. With the U.S. government now officially stockpiling Bitcoin, it has become increasingly difficult for index providers to label the asset as "non-operating loot". The benchmark provider noted that distinguishing between an investment company and a firm holding strategic digital assets requires "further research" and a broader review of all non-operating companies.

What’s Next for Digital Asset Treasuries?

The big decision from MSCI means that companies holding a lot of Bitcoin can stay in the world's major stock lists. This means MicroStrategy and similar companies won't be kicked out when they check the lists again in 2026. the global firm intends to open a broader consultation to ensure that their indexes reflect "operating companies" rather than "investment-orientated entities".

Conclusion

The MSCI DATCO index decision is a pragmatic retreat by a legacy giant. MSCI realized that excluding $113 billion in market cap would cause a "forced selling wave" that could destabilize broader equity markets. By allowing MSTR to stay while "capping" its weight, they are trying to have it both ways. For investors, this is the ultimate "buy" signal for corporate Bitcoin adoption; if world’s most influential benchmark provider can’t figure out how to kick you out, you’ve officially become a permanent fixture of the financial system.

YMYL Disclaimer

This article is for informational purposes only and should not be considered financial, investment, or trading advice. Cryptocurrency and equity markets involve risk.