MicroStrategy (MSTR) surged 6% in after-hours trading on Tuesday following a crucial decision by global index provider MSCI not to exclude Digital Asset Treasury Companies (DATs) from its indexes. The announcement provided significant relief to companies like MicroStrategy, whose substantial Bitcoin holdings represent a core part of their operational strategy.
MSCI stated that distinguishing between traditional investment companies and entities that hold digital assets as part of their core operations requires further research. "Distinguishing between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core operations rather than for investment purposes requires further research and consultation with market participants," the index provider explained.
The company added that assessing eligibility for such companies may necessitate new criteria, such as financial-statement-based indicators. For now, MSCI will maintain the current index treatment for DATs, specifically those identified in a preliminary list of companies where digital assets constitute 50% or more of total assets.
The positive sentiment spilled over into the broader crypto market. Bitcoin, which had been under pressure for most of the trading day, added approximately 1% following the news, climbing to around $93,500. This move highlights the market's interpretation of the decision as a validation of corporate Bitcoin treasury strategies.
