MSTR Jumps As MSCI Delays Exclusion of Crypto Treasury Firms

MSTR jumps ~6% after MSCI pauses plan to exclude digital-asset-treasury firms, easing near-term pressure amid analysts’ cautious optimism

  • MSTR shares rose nearly 6% in after-hours trading after MSCI said it would not proceed—for now—with plans to exclude digital-asset-treasury firms from its indexes.
  • The decision reduces immediate pressure on companies that hold large amounts of Bitcoin on their balance sheets.
  • Analysts called the development positive but cautioned it may be temporary.
  • TD Cowen analyst Lance Vitanza rates the stock a buy with a $500 price target; Benchmark analyst Mark Palmer has a buy rating with a $705 target.
  • MSCI could revisit rules later, which would pose renewed risk for firms that treat digital assets as core treasury assets.

Shares of MSTR climbed about 6% in post-market trading on Tuesday after MSCI said it would not move forward—for now—with a plan to exclude digital-asset-treasury (DAT) firms from its indexes. The pause eased near-term concern for companies that hold large amounts of bitcoin on their balance sheets. A company image is available here.

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The move matters because a formal exclusion from MSCI indexes could have prompted institutional investors to divest, lowering demand for affected stocks. The article noted bitcoin trading around $93.2k at the time, underscoring why some firms hold crypto as a treasury asset.

Analysts reacted cautiously optimistic. “Consistent with what we’ve written previously, we are surprised by this clearly positive development,” wrote Lance Vitanza of TD Cowen. He added, “What remains to be seen is whether this represents a victory for the defense or merely a stay of execution.” FactSet data shows Vitanza rates the stock a buy with a $500 price target.

Benchmark’s Mark Palmer, the firm’s top bull on the stock, said the news was favorable. “MSCI’s decision represents a welcome reprieve for Strategy, and it appears that the company’s arguments against the exclusion of digital asset treasury companies from the indexes may have had the intended impact.” He also warned that “MSCI’s decision to consider the exclusion of non-operating companies from its indexes means that this episode is not yet over.”

The outcome affects any company that treats digital assets as a core part of treasury operations. For now, firms like MSTR have a temporary easing of pressure, but the potential for future rule changes from MSCI leaves longer-term uncertainty.

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