Strategy Stock (MSTR) rose nearly 6% in after-hours trading Tuesday after MSCI said it would not move forward — for now — with its plan to exclude digital asset treasury companies from its indexes.
The move eases immediate pressure on companies like Strategy, which hold large amounts of Bitcoin. in their balance sheets but do not operate directly in the blockchain sector. A formal exclusion from MSCI indices could have pushed institutional investors to disinvest, thereby reducing demand for the stock.
Read more: Strategy jumps 6% following MSCI’s decision not to exclude DATs from indices
Yet analysts say this development may not be the end of the story.
“Consistent with what we have written previously, we are surprised by this clearly positive development,” wrote Lance Vitanza of TD Cowen. “It remains to be seen whether this represents a victory for the defense or simply a stay of execution.” Vitanza rates MSTR stock a Buy with a $500 price target, according to FactSet data.
Benchmark’s Mark Palmer, who is the stock’s top bull with a Buy rating and a $705 price target, viewed the news as positive for the stock. “MSCI’s decision represents a welcome reprieve for Strategy, and it appears the company’s arguments against excluding digital asset treasury companies from indexes may have had the desired impact.”
Read more: Michael Saylor’s MSTR responds to potential MSCI exclusion
However, Palmer also struck a cautious tone about the long-term impact. “MSCI’s decision to consider excluding non-operating companies from its indices means this episode is not yet over.”
The result is important for crypto treasury companies in general, as it has implications not only for strategy but for any company that treats digital assets as a core part of its treasury operations. If MSCI revises its rules in the future to more broadly exclude non-operating companies, Strategy could face renewed scrutiny and potentially lose its place in major market indexes.
However, at least for now, it appears to be cautious optimism for companies like Strategy.
