Uh-oh, could Saylor @saylor’s passive buying support turn into selling pressure?
Under new proposed MSCI rules, listed companies that look more like investment vehicles than genuine operating companies could be kicked out of global indices. Strategy $MSTR and Japan’s Metaplanet are both potential candidates.
Funds tracking MSCI hold around 13 million MSTR shares, or 3.1% of its total shares outstanding. If it’s actually dropped, they may have to sell passively.
JPMorgan estimated last year that MSCI alone could create around $2.8 billion in selling pressure. If other index providers follow suit, the total could be several times larger.
The good news: the list won’t be announced until November 11, and existing constituents will have a two-year observation period.
The bad news: will MicroStrategy’s “issue shares to buy crypto” money-printing machine become increasingly difficult to operate? 🥹
Under new proposed MSCI rules, listed companies that look more like investment vehicles than genuine operating companies could be kicked out of global indices. Strategy $MSTR and Japan’s Metaplanet are both potential candidates.
Funds tracking MSCI hold around 13 million MSTR shares, or 3.1% of its total shares outstanding. If it’s actually dropped, they may have to sell passively.
JPMorgan estimated last year that MSCI alone could create around $2.8 billion in selling pressure. If other index providers follow suit, the total could be several times larger.
The good news: the list won’t be announced until November 11, and existing constituents will have a two-year observation period.
The bad news: will MicroStrategy’s “issue shares to buy crypto” money-printing machine become increasingly difficult to operate? 🥹