MSCI is officially removing Strategy from its global equity indexes after the close on Nov. 30. The move follows new rules targeting non-operating companies that hold large amounts of digital assets. While the company still holds 850,364 $BTC, the exclusion forces passive index funds to sell. Estimates suggest these funds hold about 13 million shares, worth roughly $1.6 billion at recent prices.
This forced selling could squeeze the company’s share premium, which has already dropped from a 3.4x peak to about 1.08x. When this premium disappears, the company loses its ability to issue new shares to buy more BTC without diluting existing holders. We are already seeing a shift in behavior. In a recent week, the firm raised $283.8 million but spent only $81.9 million on new coins, using the rest to buy back preferred stock.
Full piece: https://app.binance.com/uni-qr/cart/387393020675867?r=KU1Z4N85&l=en-TR
This forced selling could squeeze the company’s share premium, which has already dropped from a 3.4x peak to about 1.08x. When this premium disappears, the company loses its ability to issue new shares to buy more BTC without diluting existing holders. We are already seeing a shift in behavior. In a recent week, the firm raised $283.8 million but spent only $81.9 million on new coins, using the rest to buy back preferred stock.
Full piece: https://app.binance.com/uni-qr/cart/387393020675867?r=KU1Z4N85&l=en-TR
