MSCI is highly likely to remove 'digital asset reserve companies', which will bring huge pressure to related companies According to a report by Golden Finance, an analyst stated that the stock market index MSCI is highly likely to decide in January next year to remove "Digital Asset Reserve Companies" (DATs), which could bring "enormous pressure" to related companies. Charlie Sherry, the financial director of BTC Markets, an Australian cryptocurrency exchange, stated that he believes the possibility of MSCI excluding digital asset reserve companies is "very high" because the index "only consults when it is inclined to make such changes". MSCI announced in October that it is seeking opinions from the investment community on whether to exclude digital asset reserve companies with over 50% of their balance sheets in cryptocurrency assets from the index. MSCI pointed out that some feedback suggests that such companies "exhibit characteristics similar to investment funds, which currently do not qualify for inclusion in the index. The consultation period will continue until December 31st, and the final decision will be announced on January 15th next year. Any changes resulting from this will take effect in February. The preliminary list of affected companies being considered by MSCI includes 38 companies, including Michael Saylor's Strategy Inc., Sharpnink Gaming, as well as cryptocurrency mining companies Riot Platforms and Marathon Digital Holdings. Sherry pointed out that if MSCI decides to exclude these companies, funds tracking the index will be required to sell, which in itself will put enormous pressure on the affected companies. JPMorgan analysts had previously warned that if MSCI moves forward with its elimination, Strategy Inc. could face a $2.8 billion outflow of funds. Strategy Inc. estimates that approximately $9 billion of its $56 billion market value is tied to passive funds that track its index. Sherry believes that MSCI's actions mark a shift in tone. In the past year, the corporate strategy of heavily encrypted assets was once seen as capital market innovation, but now large index providers are tightening their definitions, indicating that the market is returning from the stage of "everything is adopted" to a more conservative filtering mechanism.