Strategy saved from Index expulsion, yet a hidden clause effectively kills the infinite money loop for investors

MSCI announced it will retain Digital Asset Treasury Companies (DATCOs), including Strategy (formerly MicroStrategy), in its global indices for the February 2026 review, averting a massive forced sell-off that could have triggered billions in passive selling.

However, MSCI simultaneously implemented a technical freeze, stating it will not implement increases to the Number of Shares (NOS), Foreign Inclusion Factor (FIF), or Domestic Inclusion Factor (DIF) for these securities. This decision effectively severs the historical link where new equity issuance by Strategy to buy Bitcoin would lead to index funds automatically buying the new shares to minimize tracking error, thus absorbing dilution.

Analysts note this change removes the "upside" mechanics of the trade, forcing Strategy to rely on active buyers rather than guaranteed passive demand. This presents a significant hurdle for future capital raising efforts, potentially increasing the risk of price correction during dilution events. Furthermore, by curtailing the scaling ability of DATCOs, MSCI's move may inadvertently benefit fee-bearing US spot Bitcoin ETFs by making the corporate equity structure less efficient for passive Bitcoin exposure.

(Source：CryptoSlate)