MSCI postpones excluding crypto treasury firms, will review 'non-operating' companies

Morgan Stanley Capital International (MSCI) officially announced on Jan. 6 that it is postponing a plan to exclude companies holding digital assets in their treasuries from its indexes. MSCI stated that the proposal to remove these digital asset treasury (DAT) companies during its regular index review in February will not be implemented at this time. Instead, the index provider plans to launch a broader consultation process on non-operating companies in general. According to MSCI, this comprehensive review aims to maintain consistency with the fundamental purpose of its indexes, which is to measure the performance of companies with operating activities while excluding those that are primarily investment vehicles. The firm noted that some have suggested DATs may be more focused on investment activities than on core business operations. MSCI explained that distinguishing between companies that hold non-operating assets as part of their core business and those that are essentially investment firms will require further research and consultation with market participants.