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Wall Street JournalStrategy Stock Receives A Boost After MSCI Scraps Plan To Exclude Crypto Treasury Firms
Strategy Inc (NASDAQ:MSTR) shares are climbing higher on Wednesday after MSCI reversed its plan to remove crypto‑treasury companies from its global indexes.
What To Know: MSCI had presented the idea of removing digital asset treasury companies from its global benchmarks in the fall, arguing they function more like investment funds, which are typically excluded, Reuters reported. The proposal gave rise to concerns that other major index providers might adopt similar rules.
Crypto treasury firms pushed back, saying they are real operating companies building new products and that the plan unfairly targeted the crypto sector. During pre-market hours on Wednesday, MSCI walked back on the proposal, easing the uncertainty for companies that hold large digital‑asset reserves.
“While this decision does not resolve longer-term questions around the index eligibility of DATCOs, it removes a material near-term technical risk for a subset of public equities that function as effective proxies for bitcoin/crypto exposure,” said Owen Lau, analyst at Clear Street.
Technical Analysis: Strategy is currently positioned below all key moving averages, indicating a bearish trend. The stock is trading 0.9% below its 20-day SMA, 16.9% below its 50-day SMA, and a significant 48.5% below its 200-day SMA, which suggests ongoing weakness in the price action.
The RSI is currently at 38.36, signaling a neutral stance in momentum. This level indicates that the stock is neither overbought nor oversold, suggesting that traders should watch for potential shifts in momentum as the stock navigates its current range.
The MACD is currently above its signal line, hinting at short‑term bullish momentum. However, this signal is working against a firmly bearish backdrop, suggesting any strength could be more of a relief bounce than the start of a meaningful trend reversal.
Key support is set at $155.50, and if this level is tested, it could lead to further downside if breached. Without a defined resistance level above, the stock may struggle to regain upward momentum without a significant catalyst.
The death cross occurred in October when the 50-day SMA crossed below the 200-day SMA, which typically signals a bearish trend. This crossover reinforces the need for traders to be cautious, as it indicates a longer-term downtrend.
Over the past 12 months, Strategy has dropped 51.91%, highlighting the stock's difficulty maintaining upward momentum. This extended decline makes it especially important for traders to watch for signs of stabilization or continued deterioration.
Currently, the stock is positioned at just 4.7% of its 52-week range, indicating it is near its recent lows. This positioning suggests a critical juncture for traders, as any further declines could lead to increased selling pressure.
MSTR Price Action: Strategy shares were up 2.58% at $162.10 at the time of publication on Wednesday, according to Benzinga Pro.
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