MSCI (NYSE:MSCI), previously called Morgan Stanley Capital International, manages global stock indexes which serve as key global benchmarks for overseas investment funds. These indexes have attracted $18 trillion in benchmarked assets which track stocks across various regions, countries, market capitalizations (large-, mid-, and small-cap), and sectors.
Sounds familiar.
In a recent article discussing Heritage Global (NASDAQ: HGBL), we highlighted the ongoing MSCI consideration regarding Digital Asset Treasury (DAT) companies, firms where digital assets constitute 50% or more of total assets and whose primary business involves significant digital-asset treasury activity. The proposal under review could lead to the exclusion of such companies from MSCI’s Global Investable Market Indexes, treating them more like investment vehicles than traditional operating businesses. Importantly, this is still a consultation (extended through December 31, 2025), with no final rules implemented, no requirement to sell holdings, and a decision expected on January 15, 2026. We believe it’s worth revisiting this topic to explore the potential implications for affected DAT companies and to provide further context on MSCI’s role and methodology.
Let us explain.
First, we think domestic investors may under appreciate the importance of the MSCI. So, for more context, we are taking a deeper dive into the breadth of the MSCI which classifies global equity markets into categories based on economic development, market size, liquidity, and accessibility for international investors. Please see the biggest index categorizations below.
| Index Name | Description | Coverage | Typical Use Case |
|---|
| MSCI World | Tracks large- and mid-cap stocks in developed markets only. | ~1,300–1,500 stocks across 23 developed countries (excludes emerging markets). Covers ~85% of developed market cap. | Benchmark for “global” developed equity funds/ETFs. |
| MSCI Emerging Markets (EM) | Tracks large- and mid-cap stocks in emerging markets. | ~1,300–1,400 stocks across ~24–26 emerging countries (e.g., heavy weights in China, Taiwan, India). | Exposure to high-growth but volatile markets. |
| MSCI ACWI (All Country World Index) | Combines World + Emerging Markets for broadest global coverage. | ~2,500–3,000 stocks across developed + emerging (23 + ~24 countries). | True “global” diversification; popular for worldwide ETFs. |
| MSCI ACWI IMI | Broader version including small-cap stocks. | Covers ~99% of global investable equity. | More comprehensive global exposure. |
Hello GIMI.
MSCI’s Global Investable Market Indexes (GIMI), which include broad indexes like the MSCI ACWI IMI, contain thousands of constituents (typically around 8,000–9,000 stocks globally across large-, mid-, and small-cap companies). We have seen information suggesting 38 crypto-related firms might meet the new DAT criteria. The most prominently impacted company is Strategy Inc. (NASDAQ: MSTR; formerly MicroStrategy), the largest corporate Bitcoin holder, which would almost certainly be affected due to its holdings exceeding the 50% threshold. The overall number remains small relative to the thousands of GIMI constituents, any exclusions would have minimal impact on the indexes’ broad composition but could trigger significant passive fund outflows for the affected stocks (possibly $2-3 billion for Strategy alone).
The strategy for Strategy.
Strategy, Inc. has accumulated Bitcoin over a period of years through multiple issuances of convertible senior notes. These low- or zero-interest notes are convertible into MSTR shares at a premium to the stock price at issuance, effectively providing cheap capital that the company uses primarily to buy Bitcoin in “tranches” (batches of acquisitions).
As of December 2025, Strategy’s outstanding convertible debt totals approximately $8.2 billion, with an average maturity of around 4-5 years. The company often groups Bitcoin purchases into tranches funded by specific capital raises, notes, ATM equity sales, and preferred stock issuances.
Current major tranches include:
- Due 2028: ~$1.0-1.01 billion at 0.625% coupon (issued 2024).
- Due 2029: ~$3.0 billion at 0% coupon (issued late 2024).
- Due 2030: ~$2.0 billion at 0% coupon (issued early 2025).
These notes are unsecured, senior obligations, and convertible into cash, shares, or a combination (at Strategy’s election). Conversion premiums are typically 35-55%, and many are currently “out of the money” due to recent stock price declines, increasing the likelihood of cash repayment at maturity if not refinanced. Strategy can often redeem early under certain conditions (e.g., if stock price exceeds 130% of conversion price)
All in on BTC.
Strategy holds about 650,000 BTC, making it the largest corporate holder. While its leveraged exposure offers upside potential, risks include dilution, interest obligations, and repayment pressures if the stock or BTC prices drop. About 200,000 of those BTC were acquired in the past year and appear profitable, though MSTR shares have been volatile, down roughly 55%, amid concerns over particular underwater tranches. Shares also fell sharply after MSCI’s possible rule changes were publicly disclosed on October 10th. Notably, and perhaps not coincidentally, BTC hit an all-time high of $125k on October 6th but is now closer to $90k. For updated balance sheet figures, please see Strategy’s investor relations site or latest SEC filings.
Maybe not.
Other sources mentioned Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA), provided they meet the criteria. However, the emphasis remains on firms with significant treasury holdings rather than purely mining operations. It is important to note that RIOT is transitioning towards AI initiatives, while MARA identifies as a digital energy and infrastructure company; therefore, neither may align with the new potential MSCI category if approved. As far as DAT proposal goes, noteworthy it is a topic from such an established organization as MSCI and investors definitely need to be aware of those dynamics.
The world is your oyster.
In our view, MSCI is all about international investing, all the time. For those interested in overseas markets, which we think should be everybody on some level, no place better to start than understanding how MSCI works.
