On October 15, MSCI reportedly adopted a new screening framework for “non-operating companies”; whether MSTR will be affected remains unclear until the final list is published on November 11.
The disagreement is more likely to affect flows into MSTR stock first, rather than prompt Strategy to sell Bitcoin immediately. The new framework reportedly examines operating assets, expenses, and cash flow; if MSTR is excluded, funds tracking the relevant indexes may need to adjust their holdings. The reported effective date is after the market close on November 30.
Market reports put potential passive outflows at around $2.8 billion, but this figure lacks verifiable supporting calculations. The available materials also do not include the full text of MSCI’s rules, so “could be excluded” should not be presented as a certainty. The next steps are to check the final list, then assess the actual scope of index adjustments and the company’s financing disclosures.
If the exclusion is confirmed, should MSTR’s financing costs be a greater concern than a one-off wave of passive selling?
The disagreement is more likely to affect flows into MSTR stock first, rather than prompt Strategy to sell Bitcoin immediately. The new framework reportedly examines operating assets, expenses, and cash flow; if MSTR is excluded, funds tracking the relevant indexes may need to adjust their holdings. The reported effective date is after the market close on November 30.
Market reports put potential passive outflows at around $2.8 billion, but this figure lacks verifiable supporting calculations. The available materials also do not include the full text of MSCI’s rules, so “could be excluded” should not be presented as a certainty. The next steps are to check the final list, then assess the actual scope of index adjustments and the company’s financing disclosures.
If the exclusion is confirmed, should MSTR’s financing costs be a greater concern than a one-off wave of passive selling?