Global index provider MSCI’s proposal to bar firms with heavy Bitcoin holdings could force massive share dumps by passive funds in early 2026.
The 50% Digital Asset Rule
Global index provider MSCI has proposed reclassifying companies as Digital Asset Treasury firms if digital currencies make up 50% or more of their total assets.
This would exclude them from key indexes, as MSCI views such firms as acting like investment vehicles rather than operating companies.
The proposal aims to maintain index focus on traditional businesses.
The consultation period closes on December 31, 2025. MSCI plans to announce its final decision by January 15, 2026.
If approved, the exclusion would take effect during the February 2026 index review.
Billions in Potential Outflows
Passive funds tracking MSCI indexes would need to sell holdings in excluded companies.
The BitcoinForCorporations campaign estimates this could cause between $10 billion and $15 billion in outflows, based on a verified preliminary list of 39 firms with a combined float-adjusted market capitalization of about $113 billion.
Key affected companies include Riot Platforms, Marathon Digital Holdings, and Strategy (formerly MicroStrategy).
Strategy, the most exposed, accounts for a large share of the impacted market cap.
Analysts at JPMorgan estimate Strategy could see $2.8 billion in outflows from the MSCI exclusion alone.
Industry Pushback and Broader Implications
Crypto advocates have criticized the proposal as flawed. They argue the 50% threshold ignores business operations and discriminates against digital assets, unlike concentrations in oil or real estate.
Strategy submitted a formal response opposing the rule, calling it arbitrary and harmful to innovation.
The BitcoinForCorporations group, in its coalition brief, urges MSCI to withdraw the plan, citing risks to index fairness.
The decision could shape how traditional finance treats Bitcoin holdings and set precedents for index reclassification in the crypto market.
