Strategy (formerly known as MicroStrategy) stock MSTR posted mixed results earlier this week, but investor confidence may have improved after removing a key risk for 2026.
During the US trading session on January 6, the stock rose 4.1% to close at $164.7.
This followed light Bitcoin [BTC] correction after the recovery in early January and the resulting fear of delisting from the MSCI towed the stock has fallen in recent weeks.
MSCI Global holds Microstrategy shares
However, after US market hours on January 6, MSCI Global traded down said it will retain MSTR and other digital asset treasury companies (DATCos) for the time being.
“For now, the current index treatment of DATCOs, identified in the preliminary list published by MSCI of companies whose digital assets represent 50% or more of their total assets, will remain unchanged.”
MSCI Global added that it will need “further research” and new metrics to evaluate the sector before providing further guidance on inclusion criteria.
“Distinguishing between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core business rather than for investment purposes requires further research and consultation with market participants.”
MSTR stock response
With the MSCI risk behind us, MSTR recovered 6% after the update to a high of $171.9.
However, at the time of writing, the company has returned some profits BTC facing price rejection at the $94K resistance level.
Source: Google Finance
In response to the MSCI decision, Strategy invoiced it as a “strong result for neutral indexing.” Chaitanya Jain, an executive at Strategy, reiterated the company’s position and added,
“Neutrality in indexing is important. Let the market pick winners and losers.”
Source:
Will MSTR prolong the recovery?
Bitcoin treasury companies have pushed back against MSCI Global’s argument that they are investment funds and not operating companies like most companies on the index list.
Meanwhile, Strategy continues to hedge other medium-term risks, including preferred stock dividend obligations.
It recently expanded its US dollar reserve fund to $2.25 billion and scaled its BTC holdings to 673,783 after Michael Saylor’s signature weekend.orange/green dotsignal.
In other words, it can handle about three years of dividend coverage without having to sell BTC.
Final thoughts
- MicroStrategy shares are out of the woods following MSCI Global’s decision to keep the stock and other DATs in the index for the time being.
- MSTR stock rose 6% but later retreated after the Bitcoin price jerkily fell below $94K.