Crypto Currents: MSCI decision sparks relief rally for crypto treasury stocks

MSCI’s decision to defer restrictive exclusion rules sparked a relief rally for corporate bitcoin holders. While treasury strategies dominated the headlines, traditional financial institutions continued their march on-chain with new tokenization pilots and ETF filings, even as miners adjusted their balance sheets to weather revenue pressures. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.

MSCI DEFERRAL DECISION BOOSTS CRYPTO TREASURY STOCKS: In a significant development for equities with heavy digital asset exposure, index provider MSCI (MSCI) has decided not to implement its proposal to exclude “Digital Asset Treasury Companies,” or DATCOs, from its global indexes during the February 2026 review. According to an announcement from MSCI, the index provider will instead open a broader consultation on the treatment of non-operating companies. The deferral removes a near-term technical risk that could have forced investors to sell shares of companies that use digital assets like bitcoin (BTC-USD) or ether (ETH-USD) as primary treasury reserve assets, preserving benchmark-related capital inflows for now. The news provided an immediate lift to the sector, with the largest corporate bitcoin holder, Strategy (MSTR), surging 6% in after-hours trading on Tuesday. Other firms with similar treasury strategies, including Bitmine Immersion (BMNR), Sharplink Gaming (SBET), and Twenty One Capital (XXI), also saw modest gains following the announcement. Additionally, Strategy’s perpetual preferred stock (STRC) reclaimed the $100 par value level for the first time since November. This return to par allows the company to potentially issue more shares through at-the-market offerings to fund further bitcoin purchases.

RIOT AND CLEANSPARK ADJUST BITCOIN TREASURIES AMID REVENUE PRESSURE: While treasury firms saw relief, bitcoin miners spent December adjusting their holdings to manage operational realities. (RIOT) sold $162M worth of bitcoin in December, reducing its treasury to 18,005 BTC. The sale, which marked Riot’s largest single-month liquidation to date, coincided with a slump in “hashprice”, a term defined as a measure of mining profitability, back toward cycle lows. Riot was not alone in this strategy, as peer miner CleanSpark (CLSK) sold 577 BTC in December, generating $51.5M in proceeds. The sales come as miners grapple with compressed margins while continuing to expand capacity, with Riot increasing its deployed hashrate to 38.5 EH/s.

JPMORGAN EXPANDS JPM COIN TO CANTON NETWORK: JPMorgan (JPM) is significantly expanding the utility of its blockchain-based payment rail. According to a report by The Block, the bank’s digital payments division, Kinexys, is launching JPM Coin on the Canton Network, a layer-1 blockchain designed for institutional finance. This integration allows JPM Coin to function as a deposit token representing U.S. dollars held at the bank, facilitating 24/7 peer-to-peer transfers and settlements. In related developments, Lloyds Banking Group (LYG) completed the U.K.’s first government bond purchase using tokenized deposits, and Barclays (BCS) invested in Ubyx to develop clearing systems for tokenized money, CoinDesk reports.

CORPORATE WEB3 ADOPTION STRATEGIES DIVERGE: Corporate adoption of Web3 technologies remains mixed. Rumble (RUM) shares moved higher after the video platform launched a non-custodial crypto wallet in partnership with Tether. CoinDesk reports the integration allows creators to receive tips in bitcoin and stablecoins directly. Conversely, Nike (NKE) has reportedly sold its NFT studio, RTFKT, ending a high-profile metaverse experiment. The sale follows the shutdown of the subsidiary’s operations amid a cooling NFT market.

REGULATORY LANDSCAPE SHIFTS WITH ALL REPUBLICAN SEC COMMISSION: The regulatory outlook in Washington is shifting, with the SEC now comprised entirely of Republican commissioners following the departure of Caroline Crenshaw. This “unusual” composition is expected to pave the way for a pro-crypto rulemaking agenda in 2026, potentially removing prior hurdles for the industry..

PRICE ACTION: As of time of writing, bitcoin was trading at $91, 237.43, while ether was trading at $3,159.39, according to price data from CoinDesk.