Morgan Stanley Capital International’s (MSCI) recent decision against companies holding Bitcoin (BTC) government bonds marks a turning point for traditional capital markets.
After months of uncertainty, the global index provider has decided not to exclude companies with BTC government bond reserves from the index.
This resolution not only represents operational relief for affected companies; Rather, it sends a signal of legitimacy for corporate adoption strategies for digital currencies.This will allow institutional capital flows to continue flowing without the major disruptions expected at the end of 2025.
The market reaction to MSCI’s positions was immediate and reflected the weight of these index providers’ decisions. BTC price is on the rise, Rise to over $90,000.
This recovery is being interpreted as a short-term bullish signal, primarily driven by the elimination of the risk of a forced sell-off that would have occurred. Whether an investor was forced to sell a position in a BTC treasury company.
Preventing these companies from leaving MSCI will neutralize the selling pressure that has weighed on stocks of companies such as Strategy, which owns the corporate world’s largest Bitcoin vault with 673,783 BTC.
In fact, after the announcement The company’s stock price has been on the rise, registering an 8% growth over the last week..
This scenario strengthens digital currencies as legitimate reserve assets for companies and makes it easier for institutional investors to maintain indirect exposure to BTC through participation in strategies.
Change of position regarding non-operating companies
The controversy, which now appears to have stalled, began with MSCI’s proposed October 2025 date. Exclude organizations where digital currencies account for more than 50% of total assets from the indexas reported by CriptoNoticias.
The provider’s argument was that these companies bear more similarities to investment funds than traditional industrial companies, leading to excessive volatility that can distort the nature of stock indexes. This measure directly targeted the business model of companies that use capital markets to fund their active acquisition of Bitcoin.
If the banishment had happened, the domino effect would have been significant. Exchange traded funds and mutual funds that mechanically track the MSCI index They would have had to liquidate millions of dollars of stock.
Because companies like Strategy rely on issuing stock to raise capital and buy more Bitcoin, a sharp drop in commercial paper prices would severely limit their ability to operate and eliminate one of the most active institutional investors in the ecosystem.
The reversal of MSCI’s decision favors Bitcoin and the companies that own it, as it confirms that placing BTC on a balance sheet does not disqualify a company from participating in the index. This reduces bias and paves the way for other companies to evaluate similar financial strategies.
Not everything is so positive
Exclusions are excluded at this time, but MSCI’s decision includes technical nuances that limit the growth of these companies within the index.. The provider has decided to freeze the current weighting of these companies. This means that we do not increase the number of stocks considered or adjust the inclusion factor upward.
In financial terms, the inclusion factor is a measure that determines how much a company’s effective weight in an index is relative to its total market capitalization and free float.
Previously, for example, if a treasury company issued 10 million new shares to fund a Bitcoin purchase, the index would automatically update to reflect that increase. This created some demand, as passive funds had to buy the same proportion of stocks to maintain parity with the index.
Under the new policy, if the company issues more paper, MSCI will not include it in its index and will no longer be obligated to buy index funds. This shift changes the dynamics of funding, as this safety net of passive demand no longer exists. This has made it easier to raise funds for the purchase of digital currencies.
Future outlook and market risks
MSCI’s decision on companies holding Bitcoin in the Treasury leaves open the possibility of future changes. The supplier noted that Launch wide-ranging consultations on the treatment of so-called non-operating companiessuggesting that the debate over the nature of the companies that own Bitcoin is far from over.
The possibility of future review or exclusion remains if index regulators consider these entities to be operating primarily as covert investment vehicles rather than entities engaged in clear productive economic activity.
Nicolas Rosso, an Argentinian content creator specializing in cryptocurrencies, warned that “the fact that that constant demand will disappear complicates the possibility that the company could easily sell its shares to raise funds and thereby buy Bitcoin.”
“Therefore, if demand for strategy stocks decreases, there will be fewer purchases in Bitcoin, which could negatively impact the prices of both assets,” Rosso said.
The analyst believes that if Strategy becomes unable to pay its debts to preferred shareholders for the reasons stated above, Company may sell Bitcoin to avoid bankruptcysomething that causes the price of BTC to plummet.
“I don’t think the catastrophic scenario mentioned in the last paragraph will happen, but I think it could create a lot of FUD (fear, uncertainty, doubt) in the strategy and thus impact BTC,” he says.
