Recently, $BTC got another piece of bad news: Strategy (formerly MicroStrategy) may be dropped from MSCI’s indexes.
When people see this news, many wonder whether Strategy will be forced to sell its Bitcoin.
MSCI’s point is simple: although Strategy is now a publicly traded company, what it basically does is raise funds to buy BTC, then raise more funds and buy more. It’s less an operating business than a BTC investment vehicle.
Many people in the market say that if it is dropped, it could trigger around $2.8 billion in selling. I looked into it, and what would be sold here is actually shares, not BTC.
So this isn’t really something to worry about in the short term.
The real question is why Strategy has been able to keep buying coins over the years. It’s simply been raising funds in the capital markets. If MSTR’s share price remains under pressure and its valuation premium keeps shrinking, raising funds to buy BTC in the future may not be as easy as it once was. The thing to worry about is MicroStrategy’s ability to keep buying in the future.
The final list of companies to be removed will be announced on November 11.
When people see this news, many wonder whether Strategy will be forced to sell its Bitcoin.
MSCI’s point is simple: although Strategy is now a publicly traded company, what it basically does is raise funds to buy BTC, then raise more funds and buy more. It’s less an operating business than a BTC investment vehicle.
Many people in the market say that if it is dropped, it could trigger around $2.8 billion in selling. I looked into it, and what would be sold here is actually shares, not BTC.
So this isn’t really something to worry about in the short term.
The real question is why Strategy has been able to keep buying coins over the years. It’s simply been raising funds in the capital markets. If MSTR’s share price remains under pressure and its valuation premium keeps shrinking, raising funds to buy BTC in the future may not be as easy as it once was. The thing to worry about is MicroStrategy’s ability to keep buying in the future.
The final list of companies to be removed will be announced on November 11.