Analysis: The risk that Strategy may be removed from the MSCI index has not been completely eliminated.

Strategy (MSTR) shares rose nearly 6% in after-hours trading on Tuesday after MSCI announced it would not proceed with its plan to exclude digital asset treasury companies (DATs) from its index system. This decision eased short-term pressure on companies like Strategy that hold significant amounts of Bitcoin on their balance sheets but are not directly involved in blockchain business. If formally removed from the MSCI index, these stocks could face passive selling by some institutional investors. Analysts point out that this decision does not signify a complete end to the controversy. TD Cowen analyst Lance Vitanza stated that MSCI's latest statement is a positive development for the companies in question, but it remains to be seen whether this is merely a temporary adjustment. Benchmark analyst Mark Palmer also believes that the decision provides temporary relief for Strategy, but uncertainty remains regarding whether MSCI will reconsider its inclusion rules for non-operating companies in the index. The report states that this outcome has implications for the entire digital asset treasury company sector, and subsequent changes in index rules may still affect the index status of these companies. (CoinDesk)