Michael Saylor's Strategy Company MSCI Takes a Temporary Breather in the Fight

The decision by MSCI to delay its plan to exclude digital asset treasury companies from its indices provided short-term relief for Strategy (MSTR) shares. During after-hours trading on Tuesday, the shares appreciated by approximately 6%, and this development was received positively by investors. However, market analysts and investment advisors caution that this success may not be permanent and emphasize that future policy changes could once again target companies with bitcoin-heavy portfolios like Strategy.

The Meaning Behind MSCI’s Decision for Strategy Shares

The rationale behind MSCI’s choice to abstain from making a decision alleviates the pressure faced by companies that, despite not operating directly in the blockchain sector, hold large amounts of bitcoin BTC $78.24K on their balance sheets. Had MSCI officially removed these companies from its indices, institutional investors might have been forced to divest from their portfolios, significantly reducing demand for their shares.

Companies like Strategy, which use bitcoin treasury as a strategic asset, interpret this policy change as an acceptance of their argument. Led by Michael Saylor, Strategy has played a pioneering role in corporate bitcoin acquisitions and was among the companies directly affected by MSCI’s policy.

Analysts Are Concerned About the Longevity of the Gain

Lance Vitanza from TD Cowen describes the development as a “pleasant surprise,” but notes that it is still uncertain whether this is a temporary relief or a lasting victory. According to FactSet data, Vitanza’s analysis, which tracks MSTR shares with a target price of $500, reflects this uncertainty.

Mark Palmer of Benchmark, who has issued a strong buy recommendation for MSTR with a target price of $705, views MSCI’s announcement as a positive development for Strategy. Palmer believes that the arguments presented by Strategy seem to have achieved their intended effect. However, he also points out that MSCI’s indecisiveness regarding excluding companies that do not operate in the sector could indicate that this process is not yet complete.

Long-Term Risks of the Digital Asset Treasury Strategy

This development is significant not only for Strategy but for all companies that utilize digital assets as a core component of their treasury investments. In the future, MSCI could revise its rules to more broadly exclude companies that do not operate in the sector from its indices. Such a scenario could trigger a review process for companies like Strategy and potentially remove them from major market indices.

As the number of companies adopting bitcoin as an institutional asset class increases, how index providers like MSCI respond to this strategy becomes even more critical. For now, a cautious optimism prevails for companies like Strategy, but investors should remain prepared for future policy changes.