MSCI officially postponed the exclusion of Digital Asset Treasury (DAT) companies like MicroStrategy (MSTR) from its indices for the February 2026 review, causing a 6% after-hours price jump.
This is not a permanent stay; MSCI is launching a broader review of non-operating companies, meaning the threat of billions in passive fund outflows is simply delayed until later in 2026.
Use this temporary price increase to secure short-term profits and transition your portfolio toward direct Bitcoin holdings or diversified tech stocks before the January 15 regulatory updates.
Why the MSCI Index Decision Happened: A Logic Breakdown
I use a specific 5-step analysis to find the root cause of market movements. Let’s apply it to this MSCI situation.
a. Why did MicroStrategy (MSTR) and BitMine Immersion (BMNR) stock prices jump 5-6%?
Because MSCI announced they will not implement the proposal to exclude companies with more than 50% of their assets in digital currency during the February 2026 Index Review.
b. Why did MSCI decide to keep these digital asset companies in the index for now?
Institutional feedback showed that removing them would force passive ETFs to sell between $2.8 billion and $8.8 billion worth of stock instantly. MSCI does not want to be held responsible for a massive market crash caused by its own methodology changes.
c. Why was there no clear consensus on excluding them in the first place?
The industry is divided on whether a company that buys Bitcoin is an “operating company” or an “investment fund.” Current accounting standards are struggling to define a business that uses a digital asset as its primary treasury reserve.
d. Why are the current accounting and index rules failing to define these companies?
Legacy financial systems were built for physical assets and cash flow from services. They were not designed for a “Bitcoin Standard” where a company’s value is tied to a digital commodity rather than traditional quarterly earnings.
e. What is the fundamental root cause here?
The core issue is a systemic lag. The financial infrastructure of the 20th century is trying to force-fit 21st-century digital assets into old boxes. MSCI delayed the decision because they realized their “50% rule” was an arbitrary limit that didn’t account for how modern corporate treasuries actually function.
Your Action Plan for 2026
I’ve put together a sequence of moves you should consider if you want to profit from this. I’m not here to give you “advice,” I’m sharing how I’m looking at the money flow.
I’ve gathered the most important steps for you:
Step 1: Execute a Short-Term Profit Exit.
This 6% jump is a gift from the market. MSCI didn’t say “never,” they said “not now.” The “overhang” of exclusion is gone for 30 days, but it will return. If you are sitting on gains from the 2025 rally, now is the time to trim your position while the liquidity is high.
Step 2: Diversify into “Low-Ratio” Digital Asset Stocks.
MSCI mentioned they are looking at companies where digital assets are more than 50% of the balance sheet. Look for companies that have a 20-30% Bitcoin reserve but also have massive operational revenue from AI or software. These companies are “exclusion-proof” under the current proposed rules.
Step 3: Shift to Direct Asset Ownership.
The whole reason MSTR exists as a stock play is to provide a proxy for Bitcoin. If the MSCI Index eventually excludes these stocks, the stocks will drop, but the underlying Bitcoin won’t care. Holding the actual asset directly eliminates the “Index Exclusion Risk” entirely.
Step 4: Mark Your Calendar for Late January 2026.
MSCI is opening a “broader consultation.” This is code for “we are writing new rules.” Expect a fresh wave of volatility around January 15 when the final conclusions of the extended consultation are typically signaled to large fund managers.
Step 5: Monitor the Short Interest and “Short Squeeze” Levels.
A lot of bears were betting on a forced sell-off in February. Now that the exclusion is postponed, those bears have to buy back their shares to cover their positions. This creates a “squeeze.” Watch the volume; once the squeeze volume dies down, the natural price of the stock will likely settle lower.
Why This Matters Today
You have to realize that this isn’t happening in a vacuum. Right now, the S&P 500 and Nasdaq are hovering at record highs because of AI optimism. But we also have a labor data release coming out today, January 7. If the labor market looks weak, the Federal Reserve might cut rates again.
Low interest rates are fuel for Bitcoin and MicroStrategy. MSCI knows this. They don’t want to exclude a high-performing stock right as a “bull market” might be getting its second wind from Fed policy. They are playing a game of chicken with the market, and for today, the market won.
However, do not ignore the “Digital Asset Treasury Company” (DATCO) label. MSCI is creating a specific category for these firms. In the world of finance, once they categorize you, they can regulate you, tax you, or exclude you. This delay is just a chance for you to reorganize your capital before the next move.
Frequently Asked Questions (Q&A)
Q: Did MSCI permanently decide to keep MicroStrategy in its index?
A: No. They only decided not to implement the exclusion for the February 2026 review. They are launching a broader review for future periods.
Q: Why did the stock price of MSTR go up if the future is still uncertain?
A: Because the market hates immediate uncertainty more than future risk. The “forced selling” of $9 billion in stock that was expected in February is now off the table for the short term.
Q: Is it better to buy Bitcoin or MicroStrategy stock right now?
A: If you want to avoid the risk of index providers changing their rules and causing a stock crash, holding Bitcoin directly is the safer play. MicroStrategy is a “leveraged” play that depends on both Bitcoin’s price and its status in the stock market.
Q: What should I watch for next?
A: Watch for the January 15 update from MSCI and the quarterly earnings reports from Tesla and other firms with digital assets on January 28. These will show if other companies are following the DAT strategy.