Shares of Michael Saylor’s Strategy (MSTR.O) surged 6% in premarket trading Wednesday after index provider MSCI decided not to exclude the bitcoin-heavy firm and other crypto treasury companies from its benchmarks.
DATCOs Gain Popularity
Digital asset treasury companies, or DATCOs, saw a surge in popularity in 2025. These firms hold cryptocurrencies like Bitcoin, Ether, and Solana as their primary treasury assets, giving investors a way to gain indirect exposure to crypto markets.
Despite their rising profile, these companies remain highly volatile. Analysts note that the accounting treatment of crypto-heavy firms is still unsettled, with debate over whether they should be considered holding vehicles or operating businesses.
“For now, MSCI will maintain the current index treatment for DATCOs with digital asset holdings representing 50% or more of total assets,” said J.P. Morgan analysts.
MSCI Reverses Exclusion Proposal
Last fall, MSCI had proposed removing DATCOs from global indexes, arguing that companies primarily holding digital assets resemble investment funds, which are excluded from its benchmarks. The move raised concerns that other major index providers might follow suit.
Many DATCOs, including Strategy, argued they are operating companies developing products, not merely investment vehicles.
“MSCI intends to open a broader consultation on the treatment of non-operating companies generally… we suspect exclusion is postponed until later in the year,” said Mike O’Rourke, chief market strategist at JonesTrading.
Strategy’s Market Journey
Originally a software firm under the name MicroStrategy, Strategy began buying Bitcoin in 2020, making it the first major corporate DATCO. This helped trigger a broader trend of crypto treasury adoption among public companies.
- Strategy’s shares closed 2025 down 47.5% amid falling Bitcoin prices.
- Despite past losses, investor interest has revived following MSCI’s announcement.
Key Takeaways:
- MSCI will keep DATCOs in its indexes for now.
- Broader consultation on non-operating companies may reshape index treatment later in 2026.
- Strategy and other crypto treasury firms remain highly volatile but influential in the market.
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