MicroStrategy shares rose 6% on Wednesday after MSCI shelved plans to exclude digital asset treasury companies from its indexes, averting billions in potential forced selling pressure
Shares of billionaire Michael Saylor’s MicroStrategy rose 6% today after MSCI shelved a plan to exclude the bitcoin hoarder and other crypto treasury firms from its indexes. The surge follows a pivotal announcement from MSCI, which confirmed it would retain Digital Asset Treasury companies within its major global indices. This decision effectively averted a massive forced liquidation event that analysts estimated could have triggered between $2.8 billion and $10 billion in sell-side pressure from passive index funds.
The rally comes at a critical juncture for the Tysons Corner based firm, which has fully transitioned its corporate identity from a legacy software provider into a Bitcoin Development Company. The stock is trading near $167.45, rebounding from a volatile December. The upward move is further supported by a recovery in the price of Bitcoin, which has climbed back above the $93,000 mark after a sharp crypto winter correction late in 2025.
Digital asset treasury model validated
Digital asset treasury companies, often called DATCOs, surged in popularity in 2025 as a wave of firms began holding crypto tokens such as bitcoin and ether as their main treasury assets, lifting prices and giving investors a proxy for direct exposure. MSCI’s decision to maintain MSTR’s status provides a significant vote of confidence in the Digital Asset Treasury model. This model, pioneered by MicroStrategy founder Michael Saylor, uses the company’s equity and debt capacity to aggressively acquire Bitcoin.
While this decision does not resolve longer term questions around the index eligibility of DATCOs, it removes a material near term technical risk for a subset of public equities that function as effective proxies for bitcoin and crypto exposure, said Owen Lau, analyst at Clear Street. The most likely middle ground is that MSCI continues to grandfather existing DATCOs already in the indexes.
Aggressive bitcoin accumulation continues
This index victory arrives as MicroStrategy continues to execute its ambitious 42/42 Plan. Originally launched in late 2024 as the 21/21 Plan, a goal to raise $42 billion over three years, the strategy was upsized in early 2025 to target a staggering $84 billion in capital raises including $42 billion in equity and $42 billion in fixed income securities. As of January 4, 2026, the company holds a total of 673,783 BTC, representing more than 3% of the total fixed supply of 21 million Bitcoin. With an average acquisition cost of approximately $75,026 per coin, the company currently sits on over $12 billion in unrealized gains.
Debate over classification persists
Index provider MSCI proposed removing DATCOs from its global benchmarks in the fall, arguing they resemble investment funds, which are excluded from its indexes. The move stoked concerns that other major index providers could follow. Many such firms countered they are operating companies developing new products, and that MSCI’s proposals unfairly single out crypto.
Despite their popularity, the tokens remain prone to sharp price swings and shares have stayed volatile. The accounting treatment is also unsettled, with analysts debating whether these companies should be viewed primarily as holding vehicles or assessed based on their underlying businesses. Critics had argued that the company’s heavy concentration in a single volatile asset made it more akin to a closed end fund than an operating business.
Market implications and outlook
The immediate winners of the market action are the institutional holders of MicroStrategy, including major asset managers like BlackRock and Vanguard, who would have been forced to rebalance their portfolios had MSCI opted for exclusion. On the losing side are the short sellers who had bet on a forced selling narrative. For much of late 2025, MSTR was one of the most heavily shorted stocks on the Nasdaq as traders anticipated the MSCI exclusion.
MSCI intends to open a broader consultation on the treatment of non operating companies, and exclusion may be postponed until later in the year, said Mike O’Rourke, chief market strategist at JonesTrading. Shares in MicroStrategy, formerly named that before the rebrand to Strategy, surged after it started buying bitcoin in 2020. It was the first among DATCOs and sparked a crypto treasury frenzy.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The author and publication are not registered investment advisors and do not provide personalized investment recommendations.