MSCI’s proposed removal list sends MSTR down nine points
MSCI’s new rules screen companies based on the share of operating assets and several financial ratios. Strategy has been placed on the watchlist because of its disproportionately large Bitcoin holdings, with the final list to be announced on November 11. MSTR is currently trading at $137.5, down 9.08% for the day. If passive index funds pull out, the amount sold could run into billions of dollars.
MSTR’s model relies on issuing shares at a premium to its stock price to buy BTC. When that premium narrows, financing costs rise and its buying pace slows directly, leaving a gap in marginal demand for spot BTC. BTC’s near-term upward momentum is under pressure. Watch how well it holds on a pullback: a break below key support could trigger an accelerated decline. ETH and SOL have higher betas, so their losses will only be deeper.
For those holding BTC, what’s your cost basis? Are you willing to buy this pullback?
$BTC $ETH $SOL
MSCI’s new rules screen companies based on the share of operating assets and several financial ratios. Strategy has been placed on the watchlist because of its disproportionately large Bitcoin holdings, with the final list to be announced on November 11. MSTR is currently trading at $137.5, down 9.08% for the day. If passive index funds pull out, the amount sold could run into billions of dollars.
MSTR’s model relies on issuing shares at a premium to its stock price to buy BTC. When that premium narrows, financing costs rise and its buying pace slows directly, leaving a gap in marginal demand for spot BTC. BTC’s near-term upward momentum is under pressure. Watch how well it holds on a pullback: a break below key support could trigger an accelerated decline. ETH and SOL have higher betas, so their losses will only be deeper.
For those holding BTC, what’s your cost basis? Are you willing to buy this pullback?
$BTC $ETH $SOL