MSCI's decision to keep Digital Asset Treasury Companies (DATCOs) in its indices has sent ripples through the corporate world. It’s a mixed bag of relief and caution, particularly for small and medium-sized enterprises (SMEs) that have made the leap to hold cryptocurrencies on their books. Yes, there's optimism, but there are also risks lurking in the shadows.
What's the Deal with MSCI's Decision?
What does this all mean? Well, the decision to keep DATCOs eligible for inclusion in its major market indices is a big deal. It means companies like MicroStrategy, which holds a massive stash of Bitcoin, won’t have to deal with forced passive outflows. That’s a relief, right? At least for now. However, the review is also a reminder that MSCI is trying to separate the wheat from the chaff—traditional operating firms from those that are more like investment vehicles.
And with 190+ public companies holding Bitcoin and other cryptos, the market is on edge. Volatility is inevitable, and it’s not just a passing phase.
The Risks of Crypto Holdings
Now, let’s talk about the risks. First, the crypto market is notoriously unstable. Just look at how Bitcoin tanked in October 2025. One minute you’re riding high, the next you’re questioning all your life choices.
Regulatory uncertainty is another beast. The fact that MSCI is even reviewing DATCO classifications means changes are coming, and you can bet it will impact how companies are viewed.
Lastly, security threats are a real concern. With digital assets becoming more mainstream, the risk of cyberattacks is climbing. Quantum attacks, to be precise, are estimated to put a third of Bitcoin at risk. Scary stuff.
Managing the Risks: Best Practices for SMEs
How do SMEs manage this? There are a few best practices that could help.
First, limit exposure to crypto holdings. Keeping them below 50% of total assets can prevent the dreaded "fund-like" classification.
Second, diversify. Spread investments across various cryptos like Bitcoin, Ethereum, and Solana. Don’t put all your eggs in one crypto basket.
Third, bolster security protocols. How about quantum-resistant technologies? Partnering with institutional custodians could be a smart move.
Fourth, stay vigilant about regulatory changes. This isn’t over. Prepare for contingency plans like gradual sales of crypto holdings.
Finally, leverage institutional tools. Crypto business accounts and crypto payroll systems could give you indirect access to digital assets without the risks of holding them directly.
The Future of Crypto in Business
The future of crypto in corporate balance sheets is still unfolding. Stablecoins are on the rise as businesses look for ways to manage volatility and facilitate transactions. The emergence of B2B crypto payment platforms and crypto-friendly business banks is changing the game for treasury management.
And as crypto payroll systems inch closer to mainstream acceptance, there’s no denying that digital assets are becoming part of everyday business operations. Compliance and risk management will be non-negotiables.
In Conclusion
MSCI’s decision gives a glimpse of hope, but it also highlights the need for a solid strategy. Understanding the risks of holding cryptocurrencies and knowing how to manage them is vital. The landscape will continue to shift, so staying informed is key.
