Index Adjustment Delay Sparks Market Optimism

Shares of Strategy (MSTR) rose nearly 6% after MSCI announced it would not immediately exclude companies holding digital assets but not actively engaged in blockchain operations.

Short-Term Relief, Long-Term Uncertainty

The decision grants temporary relief to firms like Strategy, yet analysts caution that underlying risks remain. A future policy change could force institutional investors to reduce holdings.

Analyst Insights

  • Lance Vitanza of TD Cowen described the move as possibly granting a 'reprieve,' not a permanent resolution.
  • He currently maintains a 'Buy' rating on MSTR with a $500 price target.