📰 MSCI’s final list announced at 6 a.m. tomorrow: Strategy faces up to $2.8 billion in passive selling (based on an official post on Binance News Square, relaying Odaily/Solid Intel, plus trending topics on Square)
The final list for the MSCI index review is expected to be announced around 6 a.m. Beijing time on November 12 (5 p.m. on November 11, Eastern Time). If the change is confirmed, it will take effect after the market closes on November 30. JPMorgan estimates that passive selling could total up to about $2.8 billion, while Strategy estimates around $1.57 billion. As of November 8, Strategy held 850,364 BTC.
What impact could this have?
1. The selling is of MSTR shares, not BTC itself: Index funds are only required to sell the shares. The 850,000 BTC on Strategy’s books won’t move, so don’t describe $2.8 billion as a Bitcoin sell-off.
2. The real impact is on the financing flywheel: If MSTR is removed from the index, passive buying will decline and the stock premium could shrink. The pace of raising capital by issuing shares to buy Bitcoin may slow, leaving Bitcoin with one fewer consistent buyer.
3. Before the list is finalized, BTC will probably move sideways between $73,000 and $75,500. After the announcement, watch MSTR’s share price first, then Bitcoin’s price. Don’t chase long or short positions before the result is out.
Separate facts from sentiment, and rely on official updates going forward. Don’t jump the gun.
When news like this breaks, do you usually check the facts first, or watch how the market reacts?
$BTC #Strategy could be dropped from MSCI, facing up to $2.8 billion in selling
The above is solely my personal opinion and does not constitute investment advice.
The final list for the MSCI index review is expected to be announced around 6 a.m. Beijing time on November 12 (5 p.m. on November 11, Eastern Time). If the change is confirmed, it will take effect after the market closes on November 30. JPMorgan estimates that passive selling could total up to about $2.8 billion, while Strategy estimates around $1.57 billion. As of November 8, Strategy held 850,364 BTC.
What impact could this have?
1. The selling is of MSTR shares, not BTC itself: Index funds are only required to sell the shares. The 850,000 BTC on Strategy’s books won’t move, so don’t describe $2.8 billion as a Bitcoin sell-off.
2. The real impact is on the financing flywheel: If MSTR is removed from the index, passive buying will decline and the stock premium could shrink. The pace of raising capital by issuing shares to buy Bitcoin may slow, leaving Bitcoin with one fewer consistent buyer.
3. Before the list is finalized, BTC will probably move sideways between $73,000 and $75,500. After the announcement, watch MSTR’s share price first, then Bitcoin’s price. Don’t chase long or short positions before the result is out.
Separate facts from sentiment, and rely on official updates going forward. Don’t jump the gun.
When news like this breaks, do you usually check the facts first, or watch how the market reacts?
$BTC #Strategy could be dropped from MSCI, facing up to $2.8 billion in selling
The above is solely my personal opinion and does not constitute investment advice.