MSCI has begun discussions on whether companies with large holdings of cryptocurrencies and Bitcoin should be excluded from some major indexes, sending ripples through the markets that track these indexes.
According to reports, the talks target companies with more than 50% of their balance sheets invested in digital assets. Von Leh, CEO of Strategy Inc., argued in an interview that the move is “like penalizing Chevron for oil,” and said asset holdings should not disqualify a company from broad market indexes.
Impact estimates suggest billions of people could be displaced
Based on reports from banks and analysts, the potential impact could be significant. JPMorgan estimates that the MSCI adjustment alone could cause forced selling of about $2.8 billion, while that number could rise to $8.8 billion if other index providers follow suit.
Stock prices of companies that hold Bitcoin are already feeling pressure. The largest corporate Bitcoin holder, Strategy Inc. (ticker MSTR), is negotiating directly with MSCI to clarify its position and prevent its removal from major indexes.
Fong Le joins @SchwabNetwork Discuss the $60 trillion digital credit opportunity and how to respond to MSCI. Limiting passive index investing in Bitcoin today is the same thing as oil and oil rigs in the 1900s, spectrum and base stations in the 1980s, or computing and… pic.twitter.com/3VcYnF5nE4
— Strategy (@Strategy) December 10, 2025
Who is affected and why?
This review focuses on so-called “digital asset treasury” companies, i.e. companies that may act more like investment vehicles when the majority of their assets are in cryptocurrencies.
According to the consultation document circulated, the 50% threshold defines the most extreme case. Some analysts have warned that this standard is too straightforward and could misclassify companies that run real businesses while using cryptocurrencies as treasury reserves.
Industry groups come together
A coalition of Bitcoin-focused companies and industry groups has publicly opposed the move. They argue that excluding these companies would force passive funds that track MSCI indexes to mechanically sell their holdings, even if they are part of their operations.
Reports have revealed letters, interviews, and lobbying efforts aimed at influencing MSCI’s final decisions. Market participants say the rebound highlights tensions between traditional index rules and companies with nontraditional asset allocations.
Decision schedules can cause market movements
The consultation window is expected to close around December 31, 2025, with some reports suggesting MSCI could announce a decision by mid-January 2026.
If the exemption is implemented, passive funds that track MSCI indexes may need to be rebalanced, which could create mechanical selling pressure on affected stocks. However, feedback during the consultation process could change the outcome before the final rule is adopted.
Bitcoin investors face important questions
Investors now face questions not only about short-term market movements, but also about which publicly traded companies exceed the 50% threshold, how indexes should treat nontraditional assets, and whether other index providers will adopt similar rules.
The choices MSCI makes could impact the flow of billions of dollars and change the way public companies approach their crypto holdings.
Featured image from Unsplash, chart from TradingView
