Bitcoin dropped to $91,000 on Wednesday despite MSCI reversing its plan to exclude crypto treasury companies from benchmark indexes. The decline followed a 2.30% intraday fall that pushed prices near $90,250, raising questions about whether institutional index inclusion matters as much as investors believed.
What Happened: Index Reversal
MSCI announced it would maintain current treatment for digital asset treasury companies with crypto holdings representing 50% or more of total assets.
Strategy shares rose 6% in premarket trading following the decision, which came after the firm and others argued they operate as businesses developing products rather than functioning as investment funds.
J.P. Morgan analysts confirmed the index provider will postpone any exclusion until a broader consultation on non-operating companies later in 2026.
The reversal carries significant implications for Michael Saylor's company and similar firms.
Under previous rules, passive funds tracking MSCI indexes automatically purchased portions of new equity issued by included companies, creating steady demand when Strategy raised capital for Bitcoin purchases.
That automatic buying mechanism no longer applies under the updated framework, eliminating a key source of passive demand for the stock.
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Why It Matters: Capital Constraints
Strategy issued more than $15 billion in new shares during 2025 to fund Bitcoin acquisitions.
Analyst Crypto Rover said the company will face limits on raising capital for additional purchases in 2026, warning that similar issuance attempts could trigger a stock crash without passive buying support.
"MSCI fooled everyone with their announcement," he wrote Wednesday.
The accounting treatment for crypto treasury firms remains unsettled, with analysts debating whether these companies should be valued primarily as holding vehicles or assessed on underlying business operations.
Strategy stock closed 2025 down 47.5% as Bitcoin prices declined, while whale-linked accumulation moved $280 million into BTC on Wednesday despite the broader price weakness.
Mike O'Rourke, chief market strategist at JonesTrading, said exclusion appears postponed rather than canceled.
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