MSCI’s Potential Index Exclusion Threatens Crypto Treasury Companies with Massive Sell-Off

By: crypto insight|2025/12/18 18:00:15

Key Takeaways

MSCI’s consideration to exclude crypto treasury companies from its indexes could trigger up to $15 billion in forced sales.
The initiative has faced opposition, evidenced by a petition from BitcoinForCorporations, garnering over 1,268 signatures.
Analysts project a possibility of $11.6 billion to $15 billion in crypto asset outflows if the exclusion is enacted.
The final decision on the proposal is expected by January 15, 2026, with implementation slated for February 2026.

WEEX Crypto News, 18 December 2025

The potential exclusion of crypto treasury firms from MSCI’s equity indexes poses a significant threat to the crypto market. If MSCI carries forward with its proposal, these firms could be forced to liquidate approximately $15 billion worth of crypto assets. This move could exacerbate the current downward trend observed in the crypto markets over the past months.

Potential Impact of MSCI’s Proposed Exclusion

For companies holding digital assets as part of their treasury, their inclusion in MSCI’s indexes offers notable benefits, including increased visibility and investment appeal. However, MSCI’s proposal to exclude companies primarily involved with digital assets threatens these advantages. Specifically, if implemented, companies might be obligated to sell substantial portions of their crypto holdings, potentially flooding the market with up to $15 billion worth of cryptocurrencies.

This proposal has sparked notable opposition from advocacy groups like BitcoinForCorporations, which has launched a petition against the exclusion. At present, the petition has received 1,268 signatures, reflecting significant resistance within the corporate crypto investment community. The group’s estimates suggest the potential outflows could range from $11.6 billion to $15 billion, signaling a major impact on market liquidity and asset prices.

The Role of Strategy and Other Companies

Key players such as Strategy, a major digital asset treasury company, stand to be profoundly affected. Strategy’s current involvement in the market represents 74.5% of the adjusted total market capitalization of affected companies. Should they be removed from the MSCI index, analysts at JP Morgan predict a funding outflow of around $2.8 billion specifically from Strategy, underscoring their substantial role within the sector.

The exhaustive list of companies potentially impacted includes 39 entities with a collective adjusted market capitalization of $113 billion. The repercussions of potential exclusions extend beyond the immediate sell-off risks, affecting the broader perception and stability of crypto markets.

-- Price

Broader Market Implications

The exclusion proposal comes at a time when the cryptocurrency sector is already experiencing volatility. Over the past quarter, market trends have been downward, and the forced sale triggered by such significant players could apply additional downward pressure. This would not only impact the price of major cryptocurrencies like Bitcoin and Ethereum but could also ripple through secondary and even emerging digital currencies.

Adding to the trepidation is the current climate of regulatory scrutiny, where legislative environments are tightening and forcing companies into compliance-heavy operational models. The uncertainty introduced by MSCI’s potential exclusion could deter new corporate investments in crypto-assets, hampering the growth potential in this space.

Next Steps and Industry Reactions

While the crypto community waits for the final decision, anticipated on January 15, 2026, preparations and mitigative strategies are being discussed. Companies like Strategy are voicing strong objections, emphasizing the negative consequences this exclusion could entail, not only for themselves but for the entire cryptocurrency market ecosystem.

The finalized outcome of MSCI’s deliberations will become effective in February 2026, potentially marking a transformative period for crypto treasury companies. Timeline-wise, this gives affected entities a narrow window to strategize their next moves, either by diversifying their holdings or by restructuring their portfolios to minimize potential impacts.

The broader financial industry, watching closely, is gauging potential impacts on market stability and the investment community’s confidence. The outcome of MSCI’s decision could set a precedent in how other index providers and regulatory authorities may approach digital asset investments in the future.

Conclusion

MSCI’s proposed exclusion of crypto treasury companies underscores the ongoing tension between traditional financial practices and the disruptive nature of digital assets. With potentially far-reaching implications for market stability and corporate investments, this decision highlights the growing need for cohesive policies that balance innovation with risk management.

For interested investors and stakeholders, the unfolding events represent not only risks but potential opportunities in navigating a rapidly evolving financial landscape. As MSCI prepares to announce its final decision, the responses and strategies crafted by crypto treasury firms will be pivotal in determining the future trajectory of crypto market integration into mainstream financial indexes.

FAQs

What is MSCI’s proposal regarding crypto treasury companies?

MSCI is considering excluding crypto treasury companies from its equity indexes, potentially leading to significant asset sell-offs by these firms.

How much crypto could be sold if MSCI’s proposal is enacted?

It is estimated that up to $15 billion worth of cryptocurrencies might be sold if MSCI implements its exclusion proposal.

Who is opposing MSCI’s proposal, and what actions have they taken?

The group BitcoinForCorporations has launched a petition against MSCI’s proposal, gathering over 1,268 signatures to date.

What is the expected timeline for MSCI’s decision on the exclusion proposal?

MSCI plans to announce its final decision by January 15, 2026, with the changes set to be effective in February 2026.

How might MSCI’s decision impact the overall crypto market?

The forced sell-offs could add downward pressure to an already volatile market, affecting both major and minor cryptocurrencies and potentially deterring new investments.

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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