Strategy Shares Soar as MSCI Puts Index Exclusion Plans on Hold

In a move that surprised investors a week ahead of the expected 15 Jan deadline, MSCI stated it would not exclude Digital Asset Treasury (DAT) companies as part of its February 2026 Index Review.

However, the index provider has effectively capped their growth by freezing their index weightings while it deliberates.

It also warned that the reprieve is conditional. It is launching a broader consultation on "non-operating companies," reiterating that its indexes are designed to measure "operating companies" rather than entities whose "primary activities are investment-oriented."

While Strategy avoids expulsion, which JPMorgan estimated could have triggered $2.8bn in forced selling, it faces a new constraint.

MSCI stated it will temporarily halt increases to the index weighting of DAT stocks. It is freezing the Number of Shares (NOS) and Foreign Inclusion Factor (FIF) for these securities, meaning that even if Strategy issues new equity to acquire more Bitcoin, passive index funds will not automatically increase their allocation to match the new float.

This decision creates a significant hurdle for Strategy’s capital markets strategy, which relies on accretive share issuance to fund Bitcoin acquisitions.

Despite the restrictions, the market focused on the immediate survival of the DAT model.

Shares of Strategy mounted a relief rally, gaining more than 6% in after-hours trading. Other DAT stocks followed suit: MARA Holdings (MARA) rose 6.9%, and Riot Platforms (RIOT) gained 4.5%.

Strategy co-founder Michael Saylor, who had previously called the review "misguided," celebrated the delay on X: “A strong outcome for neutral indexing and economic reality. Thank you to our investors and the $BTC community.”

The review comes at a critical moment for the sector. As Sandmark reported earlier this week, nearly 40% of public Bitcoin treasury companies now trade at discounts to the value of the assets on their balance sheets.

Strategy itself held 672,497 Bitcoin at the end of the fourth quarter. Under new fair-value accounting rules, the company is sitting on a quarterly unrealized loss of $17.44bn on those holdings due to recent market volatility.

MSCI’s consultation does not yet have a deadline, leaving the sector in a state of regulatory limbo: safe from deletion, but restricted from growth.