Is Strategy being kicked out of indexes?: MSCI reconsiders position of crypto companies

The price drop on the crypto market on October 10 initially seemed to have occurred without any direct cause. It is now clear that an announcement from index giant MSCI on the same day offers a possible explanation. In a message on X, market follower Ran Neuner sets out the facts. What exactly is going on?

MSCI asks critical questions about crypto companies in indexes

MSCI is the second largest index company and manager of financial indices worldwide. For example, MSCI is responsible for which companies are included in their indices. The company is also currently considering whether companies with crypto assets as a core activity should still be classified as regular companies. They are more like investment funds.

And it is precisely this issue that may be the reason why the crypto market is having such a hard time at the moment. The outcome of this review could also be decisive for companies that have purchased crypto in the past year, and for the continuation of the current crypto cycle.

MSCI released a consultation document on October 10 in which the company stated that crypto-related companies may not belong in passive equity indices. The core of the problem lies in the corporate structure of so-called Digital Asset Treasuries (DATs). These are companies that primarily own and manage cryptocurrencies such as Bitcoin (BTC). A well-known example is of course Strategy (MSTR) by Michael Saylor.

What exactly do DATs do?

The strategy of these companies is relatively simple: by actively adding crypto assets to the balance sheet, their market capitalization increases. This makes them eligible for inclusion in major indexes. This inclusion creates additional buying pressure from passive index funds, which further drives up the price and leads to inclusion in even more indexes. This amplifying effect creates a problematic feedback loop, according to MSCI.

In the consultation, MSCI openly wonders whether such companies would not be better classified as investment funds. If that happens, they will be excluded from inclusion in passive equity indices. The final decision on this is expected on January 15, 2026.

The potential consequences of this reclassification are significant. If MSCI decides that companies such as Strategy no longer qualify as regular companies, they will be removed from the MSCI indices. This means that an important source of passive inflow disappears. Institutional investors, such as ETFs, pension funds and index trackers, are then obliged to reduce their positions.

Risk of massive outflow of capital in the event of a negative decision

This uncertainty offers a possible explanation why the crypto market suddenly collapsed on October 10. Investors anticipated the scenario where key market players such as Strategy lose access to new capital. Since these companies accounted for a large portion of the buying volume in the current cycle, this threat is weighing heavily on market sentiment.

The classification issue also has broader implications for market structure. The existence of DATs is closely tied to their ability to scale through indexes. If that foundation disappears, one of the most powerful engines behind demand for crypto in this cycle will disappear.

As long as it remains unclear which direction MSCI will choose, the market will remain vulnerable. Further price falls cannot therefore be ruled out until the end of December. A negative outcome in January could lead to a wave of delistings of DATs and possibly even forced crypto sales of these entities.

This could be the straw that breaks the camel’s back and could even lead to another bear market. A positive decision, on the other hand, could restore confidence and kick off a new phase of growth for crypto-related businesses.