Shares of Strategy (MSTR) rose nearly 6% in post-market trading on Tuesday after MSCI said it would not move forward – for now – with plans to exclude digital asset treasury firms from its indexes.
The move eases the immediate pressure on companies like Strategy that hold large amounts of bitcoin on their balance sheets but do not operate directly in the blockchain sector. A formal exclusion from MSCI indices could have pushed institutional investors to divest, reducing demand for the stock.
Read more: Strategy rises 6% on MSCI’s decision not to exclude DATs from indices
Still, analysts say the development may not be the end of the story.
“Consistent with what we have previously written, we are surprised by this clearly positive development,” wrote Lance Vitanza of TD Cowen. “What remains to be seen is whether this represents a victory for the defense or simply a stay of execution.” Vitanza rates MSTR shares a buy with a price target of $500, according to FactSet data.
Benchmark’s Mark Palmer, who is the top bull on the stock with a buy rating and price target of $705, saw the news as positive for the stock. “MSCI’s decision represents a welcome reprieve for Strategy, and it appears that the company’s arguments against the exclusion of digital asset finance companies from the indices may have had the intended effect.”
Read more: Michael Saylor’s MSTR reacts to potential MSCI exclusion
However, Palmer also echoed a cautious tone about the long-term impact. “MSCI’s decision to consider excluding non-operating companies from its index means that this episode is not yet over.”
The result is largely significant for crypto treasury firms, as it has implications not only for strategy, but for any business that treats digital assets as a core component of its treasury operations. If MSCI revises its rules in the future to exclude non-operating companies more broadly, Strategi could face renewed scrutiny – and potentially lose its place in key market indices.
However, it seems, at least for now, that it is cautious optimism for companies like Strategy.
